What can we expect next for gold?
Weekly time frame
Gold continues to demonstrate strong bullish momentum, with no significant signs of weakness on the higher time frames. The weekly structure remains intact, forming higher highs and higher lows, signaling a continuation of the uptrend.
Fibonacci analysis shows a clear break and retest of the 1.414 level, which now acts as a support zone. The next significant resistance levels, according to Fibonacci projections, are 3111 and 3128. This bullish outlook is further supported by a trend line break and successful retest, reinforcing the potential for further upward movement.
Daily Time Frame
On the daily chart, Gold remains resilient, showing no indications of a major reversal. Instead, the price has broken and retested a trend line, leaving behind a strong daily demand zone.
A bull flag formation has emerged, further validating a potential continuation to the upside.
If fundamental conditions continue to favor Gold, this bullish technical pattern suggests a high probability of further gains.
4 hr time frame
While the larger trend remains bullish, the 4-hour time frame suggests a potential short-term pullback before further upside continuation.
Gold is currently trading at the top of a bullish channel, indicating that a retracement could occur towards the channel’s midpoint.
The 50% retracement level of the channel aligns with a break of structure and previous support, making it a key level to watch.
Fibonacci analysis on this structure also highlights the 4-hour demand zone aligning with the golden zone, reinforcing a possible re-entry for long positions.
Meaning we can wait for Price to come back to 3059 resistance seen better here on the 1 hr time frame.
The 3059 level emerges as a crucial pivot point, aligning with multiple confluences:
This level represents the 50% retracement of the bullish channel.
It coincides with a previous resistance zone now turning into support.
If Gold retraces to this zone, we can anticipate a strong bullish continuation towards the weekly Fibonacci targets at 3111 and 3128.
A stop-loss below the 4-hour and 1-hour demand zones, combined with the daily Fibonacci golden zone, would offer a well-structured trade setup with a favorable risk-to-reward ratio.
Fundamental Factors Supporting Gold’s Bullish Outlook
While technical analysis provides the blueprint for potential price action, fundamental factors play a crucial role in sustaining Gold’s momentum. Here are the key macroeconomic drivers to consider:
1. Inflation & Interest Rates: Gold remains a favored asset in times of inflationary pressures. With recent CPI data showing persistent inflation concerns, market participants anticipate potential delays in interest rate cuts by the Federal Reserve. This uncertainty supports Gold’s safe-haven appeal.
2. Geopolitical Risks: Ongoing geopolitical tensions, particularly in Eastern Europe and the Middle East, continue to drive demand for Gold as a hedge against uncertainty.
3. Central Bank Demand: Central banks have been accumulating Gold reserves, particularly China and India, which adds sustained buying pressure.
4. U.S. Dollar & Treasury Yields: The inverse correlation between Gold and the U.S. dollar remains a significant factor. Any signs of dollar weakness or declining bond yields could further propel Gold’s upward trajectory.
Weekly time frame
Gold continues to demonstrate strong bullish momentum, with no significant signs of weakness on the higher time frames. The weekly structure remains intact, forming higher highs and higher lows, signaling a continuation of the uptrend.
Fibonacci analysis shows a clear break and retest of the 1.414 level, which now acts as a support zone. The next significant resistance levels, according to Fibonacci projections, are 3111 and 3128. This bullish outlook is further supported by a trend line break and successful retest, reinforcing the potential for further upward movement.
Daily Time Frame
On the daily chart, Gold remains resilient, showing no indications of a major reversal. Instead, the price has broken and retested a trend line, leaving behind a strong daily demand zone.
A bull flag formation has emerged, further validating a potential continuation to the upside.
If fundamental conditions continue to favor Gold, this bullish technical pattern suggests a high probability of further gains.
4 hr time frame
While the larger trend remains bullish, the 4-hour time frame suggests a potential short-term pullback before further upside continuation.
Gold is currently trading at the top of a bullish channel, indicating that a retracement could occur towards the channel’s midpoint.
The 50% retracement level of the channel aligns with a break of structure and previous support, making it a key level to watch.
Fibonacci analysis on this structure also highlights the 4-hour demand zone aligning with the golden zone, reinforcing a possible re-entry for long positions.
Meaning we can wait for Price to come back to 3059 resistance seen better here on the 1 hr time frame.
The 3059 level emerges as a crucial pivot point, aligning with multiple confluences:
This level represents the 50% retracement of the bullish channel.
It coincides with a previous resistance zone now turning into support.
If Gold retraces to this zone, we can anticipate a strong bullish continuation towards the weekly Fibonacci targets at 3111 and 3128.
A stop-loss below the 4-hour and 1-hour demand zones, combined with the daily Fibonacci golden zone, would offer a well-structured trade setup with a favorable risk-to-reward ratio.
Fundamental Factors Supporting Gold’s Bullish Outlook
While technical analysis provides the blueprint for potential price action, fundamental factors play a crucial role in sustaining Gold’s momentum. Here are the key macroeconomic drivers to consider:
1. Inflation & Interest Rates: Gold remains a favored asset in times of inflationary pressures. With recent CPI data showing persistent inflation concerns, market participants anticipate potential delays in interest rate cuts by the Federal Reserve. This uncertainty supports Gold’s safe-haven appeal.
2. Geopolitical Risks: Ongoing geopolitical tensions, particularly in Eastern Europe and the Middle East, continue to drive demand for Gold as a hedge against uncertainty.
3. Central Bank Demand: Central banks have been accumulating Gold reserves, particularly China and India, which adds sustained buying pressure.
4. U.S. Dollar & Treasury Yields: The inverse correlation between Gold and the U.S. dollar remains a significant factor. Any signs of dollar weakness or declining bond yields could further propel Gold’s upward trajectory.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.