Gold continues its bullish trend, nearing the significant $3,100 resistance. Price action follows key Fibonacci levels, pointing towards a potential mid-term correction.
Gold's Upward Momentum and Key Technical Levels
Gold is forming a bullish pattern with higher highs and lows. Recently, the price broke through the $3,055–$3,060 resistance and now has the $3,100 level as a 2.618 Fibonacci extension. Historically, this has acted as a resistance zone. From its low of $1,740 in mid-2022, the price has risen around 75%, confirmed by the breakout over the 1.618 Fibonacci level. However, as it approaches the critical resistance, a mid-term correction might occur.
Short-Term Support and Possible Pullback
In the hourly timeframe, gold shows strong support between $3,050 and $3,058, according to analyst GPT Profit Hunter. This zone may serve as a launchpad for further uptrend if buying pressure holds strong. Failure to maintain this level could lead to a deeper retracement.
Impact of Geopolitical Tensions on Gold Demand
Recent geopolitical events, such as increased violence in Gaza, have enhanced demand for safe-haven assets like gold. This could contribute to further upside in gold prices.
Gold's upward trend continues toward the critical $3,100 resistance. Future price movements might depend on external factors and current market dynamics.
