Gold looks up, bulls need break above $3,379

Dollar Index drops to $97.60, triggering recovery in Gold prices.
Recent decline to $3331 attracted buyers lifting prices to $3368.
Immediate support sits at $3350.
Immediate resistance sits at $3370-$3379.

Sunil Kumar Dixit SK Charting

What's going on with Gold?

Yesterday's volatile price swings took some liquidity off above long held resistance $3358 and prices dipped to critical support $3331 where buyers resurfaced as global economic sentiments remain on edge on US tariff issues.

Moreover, Trump-Putin talks in Alaska keeps markets on toes and fingers crossed for the outcome speculations on possibilities of Russia-Ukraine war ceasefire or the other way round which is likely to a game changer for the greenback as also the global stocks and safe haven demand for Gold.

Current scenario

Gold recent price swings show a shift in momentum from bearish to bullish as the sequence of lower highs and lower lows changed course to higher highs and higher lows indicating potential rebound which further requires strong break and stability above $3379 zone which aligns with 61.8% Fibonacci golden ratio.

Current consolidation is seen respecting local support $3355 below which next support sits at $3349.

If price breaks below $3349, selling can extend to $3332-$3322.

Going with the price action flow, a decisive break above $3370 hurdle will prompt retest of $3379 which is a crucial overhead resistance.

Further extension of current bullish rebound is conditioned by sustained break above $3379 which next aims premium zone 78.6% Fibonacci at $3393.

Note: Markets will monitor reaction to critical levels support $3349 and resistance $3379-$3393.

Author

Sunil Kumar Dixit

SK Charting

Sunil Kumar Dixit is Chief Technical Strategist and founder of SK Charting, a research firm based in India. He tracks Precious Metals, Energy, Indices and Currency Pairs. He also participates as an expert panellist on Channel Television, Nigeria.

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