GOLD – Pullback from the 3-week high has stabilized, but downside risks remain

Gold prices retreated after reaching a three-week high on Monday, facing repeated rejections at the key Fibonacci resistance at \$3373 (61.8% retracement of the \$3452–\$3246 decline).

The pullback was brief, with fresh selling pressure finding support at \$3350 — a confluence of Fibonacci levels (the broken 50% retracement of \$3452–\$3246 and 38.2% of the \$3310–\$3374 rally).

The formation of a higher base on the hourly chart offers a more optimistic short-term outlook, but further upside movement is needed to confirm a full reversal.

So far, the recovery has retraced 38.2% of the \$3374–\$3347 drop. A sustained move and close above \$3360 (the 50% retracement and hourly Tenkan-sen) is seen as the minimum threshold to maintain a bullish near-term bias. While hourly indicators are mixed — supported by the rising Ichimoku cloud and a bullish Tenkan/Kijun-sen configuration — 14-hour momentum remains in negative territory.

Caution is warranted if \$3360 fails to break, as this could expose the downside to a retest of the \$3350 pivot. A loss of this level would weaken the short-term technical structure.

Res: 3360; 3365; 3374; 3392
Sup: 3347; 3342; 3338; 3334