Gold: Anticipating a Healthy Correction Before a Renewed Upsurge

Gold experienced a slight decline from its recent record high of $2288, showing signs of exhaustion among bullish investors following a rapid ascent of over 5% within the last six days.

Despite resuming its upward trajectory in early April, marked by an impressive 9.3% surge in March, the metal appears poised for a corrective phase in the near term. This correction is likely fueled by profit-taking activities following the recent rally. Furthermore, technical indicators across various timeframes (daily, weekly, and monthly) suggest that the market may be overextended, signaling potential challenges for bulls as they approach the psychological resistance level of $2300.

However, the overall outlook for gold remains bullish, indicating that any correction would likely be a healthy one. Such a correction would provide an opportunity for bulls to consolidate their positions before the broader uptrend resumes.

Key support levels to watch include $2222 (a former peak and the daily Tenkan-sen) and $2211 (the rising 10-day moving average). In the event of a more significant pullback, stronger support is anticipated around the $2200/$2180 zone, which encompasses both psychological support and the 20-day moving average, serving to maintain bullish momentum.

Res: 2288; 2300; 2359; 2400

Sup: 2222; 2211; 2200; 2187