Gold on a technical level
Gold tests the $5,080 per ounce level
Gold prices fell during today's trading to around $5,020 per ounce before rising again, indicating continued volatility in the precious metal's movement during the current period.
Despite this decline, gold still maintains one of the most important technical support levels in the market, which is $5,080 per ounce, representing a pivotal point in determining the next direction of prices.
The $5,080 level has held for five consecutive days
It is noteworthy that gold has failed to break the $5,080 per ounce level for five consecutive days, testing this level and then closing above it during last week's trading.
This price behavior is a relatively positive sign, as it reflects the presence of buying power that supports prices and prevents them from breaking this important level so far.
Positive scenario: Possible rise towards $5300
Technical forecasts indicate that if gold continues to trade above $5,080 per ounce, this could open the door to a new wave of gains.
In this scenario, gold is expected to target $5,300 per ounce as its first target, then complete the harmonic pattern towards $5,460 per ounce.
The realization of this scenario depends largely on the price's ability to maintain trading above the current support level.
Negative scenario: Breaking support may push gold to correct
Conversely, breaking the $5,080–$5,050 per ounce level and closing below it may increase selling pressure on gold.
In this case, the precious metal may witness a deeper corrective wave targeting the following levels: $4900 per ounce as the first target, then $4800 per ounce near the uptrend line on the daily chart.
These levels may represent suitable areas to rebuild new buying positions if positive reversal signals appear.
