Gold outlook: Extension below $2,900 to mark healthy correction ahead of fresh push higher
XAU/USD
Gold price dips below important support at $2900 where the price action showed hesitation in past two days, but initial negative signal from double downside rejection and long tails of daily candles, is likely to be offset by fresh drop today.
It seems that investors opted for stronger profit-taking after President Trump signaled that tariffs on imports from Canada and Mexico could be postponed for another months, with deeper pullback to provide better buying levels.
The notion is supported by growing uncertainty over tariffs and threats of trade war, while geopolitical situation remains fragile that keeps strong safe haven demand.
Close below $2900 to validate fresh bearish signal and expose supports at $2868 (Fibo 23.6% of $2582/$2959 upleg) and $2845 (30DMA) with dips expected to find ground at $2813/10 zone (Fibo 38.2% / lower 20-d Bollinger band) to mark healthy correction and keep larger bulls in play.
Res: 2900; 2919; 2942; 2956.
Sup: 2868; 2845; 2810; 2769.
Interested in XAU/USD technicals? Check out the key levels
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
