The gold price concluded on a negative note yesterday, breaching the critical level of $2,340.10 and closing the daily candlestick below it. This decline signifies a resurgence of correctional bearish pressure. A closer examination of the chart reveals an impending formation of a head and shoulders pattern, indicating further downward movement. The projected negative targets extend beyond the 38.2% Fibonacci correction level at $2,272.06, ultimately aiming for $2,217.10.
With this analysis in mind, it’s anticipated that the upcoming trading sessions will witness a continued decline. A decisive breach of $2,319.80 will activate the negative implications of the aforementioned pattern, potentially propelling the price towards the envisaged targets. Conversely, breaking through the resistance levels of $2,340.10, followed by $2,360.00, would halt the expected downtrend and pave the way for a recovery.
Expected Trading Range
The expected trading range is anticipated to fluctuate between the support level of $2,300.00 and the resistance level of $2,345.00.
Trend Forecast
Given the aforementioned analysis, the trend forecast for gold remains bearish in the near term. Traders are advised to exercise caution and closely monitor key support and resistance levels for potential trading opportunities.
