Gold is hovering near the $2,355 – What's next?

In our previous analysis, we discussed the critical levels for gold, particularly the significance of the 2385 support and the 2415 resistance. The scenario unfolded as predicted, with gold breaking below 2385, triggering bearish momentum. Currently, gold is hovering near the 2355 level, a crucial support zone 2350-2355, where it previously found support on its way up to 2488.

Key levels to watch

2,350-2,355 support zone

The 2355 level is pivotal. If gold maintains above this level, we might see a bullish reversal or at least a consolidation phase with upside resistance as 2385, 2400 & 2425. This area 2350-2355 is significant as it represents a previous support level that held firm before the move to 2488. Bulls are likely to defend this zone strongly, and it could present buying opportunities if the zone is intact.

Breaking 2,355

Should gold breach the 2350-2355 zone, the bearish trend could extend further, with the next key support at 2305. This would mark a continuation of the downtrend, potentially signaling a deeper correction or a new bearish wave in the Elliott Wave cycle.

Monitoring the market

The current proximity to the 2355 support level makes it a critical juncture for gold traders. A hold above this level & the zone 2350-2355 could suggest a potential rebound or sideways movement, while a break below could lead to further downside risk.