Gold Recovers After Tuesday’s Decline, Maintaining Broad Bullish Structure Above $5000

Gold edged higher on Wednesday, gaining 1.6% in Asian and European trading, following a more than 4% drop on Tuesday.

The yellow metal had come under pressure from a stronger US dollar, driven by increased safe-haven demand and reduced expectations of Fed rate cuts. Wednesday’s rebound, which recovered roughly 50% of Tuesday’s decline, indicates that the losses may be temporary.

The psychological $5000 support level, reinforced by the daily Kijun-sen, contained Tuesday’s slide, signaling a healthy correction within the uptrend from the $4402 low on February 2 and keeping the broader bullish structure intact.

Gold’s outlook remains positive as geopolitical tensions—a key driver for the metal—continue to create uncertainty. This environment is likely to sustain safe-haven demand from central banks, as well as individual and institutional investors.

The technical picture has improved on the daily chart: moving averages are back in full bullish alignment, momentum is strengthening, and price action continues to find support from the daily cloud.

For near-term bullish continuation, gold needs to overcome key resistance around the $5200 zone, which coincides with the psychological level, the daily Tenkan-sen, and the 50% retracement of the $5419–$4996 decline. Clearing this barrier would open the way for the next targets at $5257 (Fibonacci 61.8%), $5300–$5319 (psychological and Fibonacci 76.4%), and $5400–$5419 (psychological level, upper boundary of the daily triangle, and Monday’s peak).

On the downside, the recently broken ascending 10-day moving average offers immediate support at $5170, followed by $5100 (session low and psychological level) and $5048 (trendline support), guarding the critical $5000 breakpoint.

Res: 5207; 5257; 5319; 5400
Sup: 5170; 5100; 5048; 5000