Gold – Key $3000 Level Holds the Spotlight as Market Awaits Clear Directional Cues

Gold slipped below $3000, touching a three-week low in early Monday trading, extending the pullback from the recent all-time high seen over the past two sessions.

The sharp decline took markets by surprise, as gold would typically gain in an environment of heightened risk aversion and rising uncertainty. However, steep losses in stock markets prompted investors to sell profitable gold positions to cover losses and meet margin calls.

The drop pushed prices through the $3000 mark, previously identified as a key support area due to its psychological importance, role as a former base, and alignment with the 50% retracement of the $2832 to $3167 rally. A subsequent rebound suggested strong demand at this zone, underlining its significance.

Price behavior around the $3000 level is likely to provide clearer directional cues. Holding above this threshold—with at least two daily closes—could signal that the correction is nearing completion.

This idea is partially backed by the Fed’s increasingly dovish tone, as markets adjust to the possibility of more rate cuts than initially projected this year.

Still, further upside confirmation is needed. A push above the $3050 area (today’s high and the 38.2% Fibonacci retracement of the $3167 to $2970 drop) would support a bullish revival, while a close above the $3070 area (50% retracement and 10-day moving average) would confirm the shift and refocus the short-term outlook to the upside.

Conversely, with fundamentals largely unchanged—and potentially worsening—the downside risk persists.

A sustained break below $3000 would keep broader bears in control, opening the way for deeper retracement toward $2970/60 and potentially extending to $2926.

Res: 3039; 3055; 3070; 3088
Sup: 3000; 2970; 2950; 2926