Gold stays favorable while holding above $2300; key U.S. data is being watched for new signals
Gold prices are trading within a tight range on Wednesday, following a nearly 3% drop over the last two days. This movement breached the psychological $2300 support level, but it failed to sustain a lower break, held back by the daily Kijun-sen ($2289).
Tuesday’s trading formed a hammer candlestick pattern, suggesting a potential reversal of the recent limited pullback, which can be seen as a healthy correction for now.
Moreover, a bear-trap under the rising 20-day moving average may strengthen the reversal signal, but more upward movement is needed to confirm.
The near-term outlook remains bullish as long as the price holds above the $2300 level, with repeated closes above the 20-day moving average ($2324) reinforcing the near-term structure for acceleration through $2340 (Fibonacci 38.2% of $2417/$2291) and a close above the 10-day moving average ($2358) confirming a reversal.
Fourteen-day momentum shifted north above the center line, indicating existing bullish momentum, while the RSI remains above the neutral 50 zone.
A decisive break of key supports at $2300 and $2289 would increase the risk of a deeper pullback.
Markets are paying close attention to key economic releases from the U.S. this week (Q1 GDP on Thursday and the PCE price index, the Fed’s preferred inflation gauge), which could provide more insight into the Fed’s interest rate path and generate fresh signals for gold.
Res: 2340; 2358; 2369; 2388
Sup: 2324; 2300; 2289; 2260
