#GOLD ANALYSIS 24TH FEBRUARY - $3,000? Where next?

In this daily chart of #Gold, we can observe several critical price levels that define the current market dynamics. Notably, the previous day's closing low is marked at 2916.79, indicating a significant point where sellers were able to push the price down, reflecting a moment of bearish sentiment. Conversely, the previous day's closing high is recorded at 2949.72, which represents a peak where buyers were in control, showcasing a bullish sentiment that could have been driven by various factors, including economic data releases or geopolitical events that influence investor behaviour.

As we analyse these levels, a potential pullback towards the established support at 2916.79 becomes crucial. This price point not only serves as a vital low but also as a psychological barrier for traders.

A successful test of this support level, coupled with signs of convergence in terms of the trend line support, could be highly significant.

Such a scenario might indicate that the market is ready to reverse its trend, leading to a bounce off this support level. If this occurs, it could set the stage for a bullish trajectory toward the elusive $3,000 mark.

However, for this bullish scenario to gain traction, it is essential for the price to break through the previous day's closing high at 2949.72. This level acts as a critical resistance point that traders will be watching closely, as a breakout above it could signal a strong continuation of upward momentum in the gold market.

Chris

Trader for over 35 years & Coach