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Gold prices have been trading within a narrow range, bounded by the 2317 support and 2340 resistance levels during the start of the week.
Technical Outlook:
Our technical analysis suggests a potential continuation of the downward trend. This bearish outlook is supported by the price remaining below the crucial 2340 resistance level (23.60% Fibonacci retracement) on the 240-minute chart, coupled with the price trading below the 50-day simple moving average.
Downside Targets:
A break below the 2317 support level would likely trigger a resumption of the downward correction, with potential targets at 2300 and 2272.
Potential Reversal:
However, a return of trading stability above the 2340 resistance level and a successful consolidation could invalidate the bearish scenario. In this case, the price could turn higher, initially targeting 2345 and potentially extending towards 2357.
Key Levels:
- Resistance: 2340, 2345, 2357
- Support: 2317, 2300, 2272
Important Note:
The release of the U.S. Consumer Confidence Index today could significantly impact gold prices. Traders should exercise caution and closely monitor market reactions to this high-impact economic data.
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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