Gold’s current price reflects a bearish trend but also indicates a range-bound market, necessitating caution when making trading decisions. The price is currently positioned below both the 200-day and 50-day moving averages, reinforcing the bearish sentiment. The market is likely to experience a period of consolidation within the bearish zone.
Scenario 1: There is a possibility of a further decline in the price from its current level, leading to potential tests of important support levels at 1912 and 1910.00. Downside momentum may extend towards the range of 1914.14 to 1912.53, with 1910 to 1906.70 serving as a critical support zone. If bearish pressure persists, the price could even reach lower levels, testing the range of 1901 to 1895.
Scenario 2: In the event of a price recovery, resistance levels at 1921 to 1931.7 would be the initial targets to watch. A successful break above this range may lead to a further upward move, challenging the upper resistance zone of 1933 to 1935. If this level is surpassed, the market could potentially rise towards levels between 1935 and 1940.
The short-term momentum of the market is currently bearish, indicating a cautious stance. However, the overall direction remains undecided, as depicted by the Relative Strength Index (RSI) oscillating in an undecided range.
Traders should exercise caution as the market is likely to range between 1895 and 1940 in the coming days. Pay close attention to the levels of 1903 and 1935 as they hold significance in determining the market’s future direction, whether it will continue in a bearish or bullish trajectory. A thorough analysis of these levels will help guide trading decisions in this dynamic gold market.
Key levels to watch are 1927,1924,1918,1914,1943,1950,1933, 1935,1912,1906