Gold price forecast have been fluctuating this week. After a brief rise, gold reached $2,364 on Tuesday but dropped to $2,334 on Wednesday. This is below Tuesday’s low of $2,340, and the price remains near this level. Although gold closed above the 20-Day Moving Average (MA) earlier this week, it is now set to close below it again. Yesterday’s high also met resistance just below the uptrend line after last Thursday’s fall below that line.
Bearish Signals Indicate Further Decline
Gold’s movement around the uptrend line and the 20-Day MA suggests a possible downward trend. These levels, once acting as gold support, have now turned into resistance. This indicates that the decline could continue. The two-day rise earlier this week formed a bearish flag pattern, which was confirmed when the price dropped below yesterday’s low. It’s still unclear if this will lead to a significant drop, but key support levels are not far below. The 50-Day MA is critical at $2,321, but for this to be tested as support, the price must first break last week’s low of $2,325.
50-Day MA Support Is Key
If gold doesn’t hold the 50-Day MA as support, the next important level is the long-term trendline just below it. There’s also the 50% retracement level at $2,289 to watch. This level matches the most recent low at $2,277. The current correction could end with a gentler upward trend compared to its previous steep rise.
Slower Upward Trend Expected
Gold price forecast previously moved up quickly from the February 14 low, but the angle of this rise has now slowed. This happened after the trendline broke on April 23. A new trendline was drawn to connect with the recent low, and as gold corrects further, a slower upward trend is likely. Once a new low is formed, the trendline will be adjusted, signaling a new upward movement.
Conclusion
As gold prices continue to move, key support levels will be closely monitored. The 50-Day MA and the 50% retracement level will be important in determining if the decline deepens or if a new upward trend begins. For regular updates on gold prices, visit Daily Gold Signal and stay informed with the latest Daily Gold Updates.
