Gold prices have recently hit their lowest level in a month after experiencing a pullback from their all-time high. The price of gold broke below the 50-day simple moving average (SMA), signaling a downward trend in the market. However, in the midst of this decline, there have been signs of recovery as the price has started to climb back up since hitting a one-month low on June 7. The bulls seem to have their sights set on the short-term SMA, giving hope for a potential turnaround in the near future.
The immediate resistance for gold can be found at the June high of 2,388, with a possibility of reaching the April peak of 2,430 if that level is surpassed. Breaking through that zone could propel the price towards the record high of 2,450. On the other hand, if bearish actions continue, support levels can be identified at the range of 2,286 to 2,777, marked by the May and June lows. Falling below this range, the price may test the March resistance of 2,223, which could potentially act as support in the future. Further declines could be halted at 2,145, a key region that has alternated between support and resistance over recent months.
Gold prices are currently in a phase of slow recovery as they aim to reclaim the 50-day SMA. However, the future remains uncertain as a failure to break above this critical barrier could trigger another round of weakness in the market. It is essential for investors to keep a close eye on the price movements of gold and watch for any decisive breakouts or breakdowns that could signal a shift in the market trend.