Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold prices faced significant selling pressure during the previous trading session, aligning with our anticipated bearish outlook. The metal reached the official target of the ongoing downtrend at $2589 per ounce, marking its lowest point at $2589.
On the technical side, gold has established a solid support base around $2589, a level reinforced by the main upward trend line. Current price action shows stability above the critical psychological barrier of $2600. A closer look at the 4-hour chart indicates the Stochastic oscillator is attempting to generate positive signals, suggesting the possibility of a limited upward correction.
In today’s session, we may see recovery attempts, with $2630 as the initial target. A breakout above this level could strengthen the prospects for a continued upward move toward $2647.
However, it is crucial to emphasize that this optimistic scenario is contingent on gold maintaining daily trading above $2600. Should prices break below this support, the downtrend is likely to resume, with targets at $2571 and $2553, respectively.
Caution: Today’s high-impact economic data from the US, specifically the “Consumer Price Index – Annual and Monthly,” could trigger significant price volatility upon release.
Risk Alert: Market conditions remain highly uncertain due to ongoing geopolitical tensions, making various scenarios plausible.
Disclaimer: Trading in CFDs involves risks, and all scenarios are possible. This analysis is not investment advice but rather an interpretation of the current technical landscape for gold.
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