The latest analysis of gold prices reveals a critical juncture as the commodity tests the neckline of a head and shoulders pattern depicted on the chart. Should the price breach the significant level at $2317.40, analysts anticipate the activation of the pattern’s negative effect, potentially triggering a downward trend. This bearish correction is projected to target initial levels at $2272.05, with potential extensions to $2217.10.
Market sentiment leans towards a continued bearish trajectory in the near term, underpinned by the downward pressure exerted by the EMA50 indicator. It’s important to note that the sustainability of the bearish momentum hinges on the price’s ability to maintain levels below $2340.10, particularly critical support residing below $2360.00.
Trading experts foresee a trading range confined between the support level at $2300.00 and resistance at $2340.00, providing a framework for potential market movements.
Overall, the prevailing trend forecast suggests a bearish outlook for gold prices, with investors advised to monitor key support and resistance levels closely for potential shifts in market dynamics.
