A short-term bear signal below $2,978
Pullbacks for testing previous resistance levels as support are indicated by below today's lowest. The previous high price range at $2,956 is the first price level to monitor support. Further down is the recent swing high and weekly high of $2,930. It soon added a 20-day MA, and is currently rising at $2,921, and should soon converge into or rise above the $2,930 price area.
Weekly bull signal confirmed
In addition to breakouts to new record highs this week, Gold broke out from a one-week continuation pattern at a rally that exceeded last week's high of $2,930. The bullish performance that followed showed strong demand and bullish momentum. Bearish pullbacks after reaching the target zone are normal and healthy against the trend as gains are digested.
Following the testing of support, it should lead to a bullish setup. Despite the potential support levels mentioned above, the trend support area for advances that started at the December lows could potentially drop to nearby trendlines before the retracement is complete.
First high target at $3,012
Regardless of potential short-term bearish signs, the decisive breakout above the $3,005 high on Friday shows continued strength and the possibility of reaching a high price before the pullback. There are five potential targets ranging from $3,012 to $3,043. It's hard to say which is the more important price level, but the price target derived from the longest pattern is $3,033.
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