GOLD – Shallow correction from new record high keeps broader bullish trend intact

Gold price holds below the $4000 mark for the second straight day, as traders booked profits following the metal’s surge through the psychological barrier and the new record high at $4059 on Wednesday.

The overbought daily indicators and the technical significance of the $4000 level prompted partial profit-taking, though the pullback has remained shallow so far, with limited dips contained by the 23.6% Fibonacci retracement of the $3627–$4059 rally, despite Thursday’s completion of a bearish engulfing pattern on the daily chart.

The current correction is viewed as a healthy pause within the broader bullish trend, offering potentially better re-entry opportunities for buyers, as the larger bullish structure remains intact.

Fundamental drivers behind the rally—expectations for further Fed rate cuts and persistent geopolitical and macroeconomic uncertainty—remain unchanged. However, some easing of risk sentiment could occur if the anticipated peace agreement between Israel and Palestine is finalized and upheld.

The yellow metal remains poised for an eighth consecutive weekly gain, up nearly 3% this week, reinforcing the strong bullish outlook.

A weekly close above $4000 would reaffirm the prevailing bullish structure and suggest that the brief correction has likely run its course, shifting focus back toward the upside.

Conversely, failure to decisively reclaim the $4000 level on Friday would leave the market vulnerable to an extended consolidation or a limited correction, with the $3900 zone (psychological level and near the 38.2% Fibonacci retracement) expected to act as solid support and maintain the broader bullish bias.

Res: 4015; 4028; 4059; 4100
Sup: 3957; 3944; 3926; 3900