Gold tests key support levels once again, but early signals still await confirmation
Gold prices fell on Friday after failing to reclaim key resistance levels at $3,371 (broken 23.6% Fibonacci retracement of the $2,956–$3,500 rally) and the psychological $3,400 mark—signaling that the corrective phase from the all-time high may not be over yet.
The latest decline is once again testing lower support levels at $3,300 (psychological) and $3,292 (38.2% Fibonacci retracement). A firm weekly close below these levels would generate a fresh bearish signal and pave the way for a deeper pullback.
Gold is poised to end the week in negative territory after two strong weeks of gains, with the long upper wick on the weekly candle indicating increased selling pressure. Despite being on track for a fourth consecutive monthly gain, the long shadows on the monthly chart point to growing investor indecision, as supportive fundamentals that previously boosted safe-haven demand begin to shift.
The recent drop was driven by easing trade tensions between the U.S. and China, following softer rhetoric from President Trump, who downplayed the tariff narrative and hinted that talks had already begun. However, conflicting reports from China, which denied Trump’s claims, have kept the overall geopolitical climate tense.
A decisive break and weekly close below $3,292 would confirm a bearish reversal and open the door toward deeper correction targets at $3,228 (daily Kijun-sen / 50% retracement) and $3,200 (psychological support).
On the other hand, repeated failures to break below the $3,300/$3,292 zone could suggest extended consolidation or even potential basing—though confirmation would require a bounce back above $3,371.
While daily indicators remain mostly bullish (strong momentum, bullish Tenkan/Kijun-sen setup), the weekly chart hints at a possible reversal, with a red candle, fading momentum, and RSI turning lower from overbought territory.
Watch for a clearer directional cue from a confirmed break of either $3,292 or $3,400.
Res: 3307; 3346; 3371; 3400
Sup: 3260; 3245; 3228; 3200
