Gold prices are showing recovery, but they are now facing an important resistance level. A clear break above this level can open more upside targets, while failure to cross may bring selling pressure again.
Gold (XAUUSD) regained traction on Thursday and bounced around $40, after pullback from new record high ($3707) found footstep at $3730 zone.
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Gold initially spiked above $3700 after FOMC announcement but reversed quickly after comments from Fed chief Powell proved to be less dovish that markets anticipated.
Current Scenario
Gold recovery has reached a resistance of $3673.
- If gold prices moves above $3673 clearly, the next targets are $3690–$3695, and then $3707 (yesterday’s high).
- If gold crosses above $3707, price can rise to $3715 and then $3725–$3735.
Downside Risk
- If gold fails to break above $3673, selling pressure may return.
- Price may fall first to $3634, and then further to $3615–$3613.
- Stronger selling can push prices down to $3596–$3590, and even to the 4-Hour 100 SMA at $3575.
Overall Outlook
- Long-term trend is still very bullish, with possible targets of $3880–$4000.
- But in the short term, a correction is possible due to:
- Very sharp rise on the daily chart.
- Overbought RSI reading of 88 on the monthly timeframe.
Gold Prices Important Levels Table
| Level | Meaning |
|---|---|
| $3673 | Key resistance, needs clear breakout |
| $3690–$3695 | Next resistance zone |
| $3707 | Yesterday’s high, critical level |
| $3715, $3725–$3735 | Further bullish targets |
| $3634 | Support level if breakout fails |
| $3615–$3613 | Next support zone |
| $3596–$3590 | Deeper correction zone |
| $3575 | 4-hour 100 SMA support |
| $3880–$4000 | Long-term bullish target |
FAQs
Q1. Is gold bullish or bearish right now?
Gold is long-term bullish, but short-term correction is possible.
Q2. What is the most important level to watch?
$3673 is the key level; a clear move above it can trigger more upside.
Q3. Where will gold face the next big hurdle?
If gold prices crosses $3673, then $3707 is the next major level to watch.
Q4. Can gold fall more in the short term?
Yes, if it fails to cross $3673, selling may push prices down to $3615–$3590.
Q5. What is the long-term target for gold?
If bullish momentum continues, gold prices can head towards $3880–$4000.