FX.co ★ FX-Perfact | XAU/USD, GOLD

GOLD Daily Timeframe: The condition of GOLD on the Daily Timeframe shows that the trend remains bullish, although selling pressure has begun to emerge in the last few sessions, triggering a short-term correction. The price, which remains above the 100- and 200-day Moving Averages (MA), indicates that the main trend structure has not changed. Both indicators remain trending upward with a relatively wide gap, reflecting solid medium- to long-term upward momentum. As long as the price remains above the 100-day MA, the chances of continuing the uptrend remain greater than the possibility of a bearish reversal. The ongoing correction can be viewed more as profit-taking after a strong rally. In such conditions, the 100-day MA serves as the primary dynamic support area that market participants should pay attention to. If selling pressure succeeds in pushing the price above the 100-day MA, attention will then shift to the 200-day MA, which supports the long-term trend. As long as the 200-day MA remains stable, any declines tend to be exploited as accumulation opportunities by investors and traders who remain confident in gold's upward prospects. In terms of horizontal support and resistance, several technical areas play a crucial role in determining the direction of the next price movement. The nearest support area is an area that has repeatedly successfully held off selling pressure, thus becoming a primary defense zone for buyers. If this support is maintained, the opportunity for a rebound towards the nearest resistance becomes greater. Conversely, if this support is breached with increasing trading volume, the price has the potential to continue correcting towards the next support level, near the 200-day moving average (MA).

On the upside, horizontal resistance becomes a barrier that must be overcome to confirm the continuation of the bullish trend. This resistance previously served as an area for profit-taking, so it's natural for selling pressure to increase again as the price approaches that level. A valid breakout above this resistance level, especially if accompanied by a strong closing candle and increased volume, would open the opportunity for GOLD to reach a new high. In such a situation, positive sentiment is expected to reignite, allowing the next upward target to be directed towards a higher psychological resistance level. The 100-day moving average (MA)'s slope remaining above the 200-day moving average (MA) also indicates that there has been no bearish crossover signal. This confirms that the emerging selling pressure is still corrective in nature, not a major trend change. As long as both moving averages maintain a bullish pattern, the probability of an uptrend remains greater than a downtrend. Therefore, traders tend to be more selective in taking sell positions and wait for buying opportunities when the price approaches a valid support area. Price movements also indicate that gold volatility remains quite high, often experiencing rapid ups and downs within a single trading session. This situation requires market participants to be more disciplined in determining entry points and managing risk. Price reactions to horizontal support and resistance areas will provide important clues regarding the direction of future movement. If the price is able to form a bullish rejection pattern in the support area, the chance of a rebound increases. Conversely, the formation of a strong bearish candle below support increases the chance of a deeper correction. From a momentum perspective, buyer dominance is still evident, as each time the price weakens, buying pressure resurfaces before reaching the 200-day moving average (MA200). This indicates that buying interest in gold remains quite high, especially amidst global economic uncertainty, fluctuations in the US dollar exchange rate, and expectations regarding central bank interest rate policies. These fundamental factors still have the potential to support gold prices, so current technical analysis remains bullish as long as key support levels remain intact. Overall, gold maintains a healthy uptrend structure, with the 100-day moving average (MA200) above the 200-day moving average (MA200), confirming the strength of the trend. Horizontal support areas are crucial zones to maintain upward momentum, while horizontal resistance levels serve as confirmation for continuing the rally toward higher targets. As long as the price moves above these two moving averages, any correction should be viewed as part of a consolidation within the uptrend. However, if the price begins to break through the 100-day moving average (MA200) and then weakens below the 200-day moving average (MA200), the risk of a bearish trend shift increases, requiring market participants to anticipate the potential for a deeper correction.