Spot gold daily chart shows test of support near the long-term uptrend line
Support Under Pressure, Trendline in Focus
The corrective low was $4,023 from last week and it represents the low of an initial support range. Therefore, signs of support should be seen, followed by clear evidence of strong demand emerging above that level before any meaningful bullish shift can be confirmed. If it does not, that would be a bearish sign. Otherwise, the long-term uptrend line defines a potential support zone. Since the long-term 200-day moving average broke as support on the way down, the lower uptrend line becomes the next lower dynamic trend indicator.
Broader Resistance Cluster Defines Upside Ceiling
If gold can eventually reclaim the 20-day moving average, followed by Wednesday’s high, there is a potentially significant resistance zone a little higher, starting around the 200-day moving average near $4,462, and rising to the 50-day moving average around $4,563. Both an uptrend line and downtrend line cross within that price zone as well, adding to its potential significance. Notably, this confluence of resistance levels aligns with the broader bearish context outlined initially, where rallies continue to stall beneath key moving averages and prior structural support turned resistance.
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