Gold Price Forecast: Bullish Signs Emerge

Author: Bruce Powers

Published: July 1, 2025

Overview

The article discusses the recent performance of gold prices, highlighting a bullish reversal and recovery above key moving averages. Despite a recent pullback, gold has shown resilience and potential for further gains, although additional strength is required to surpass critical resistance levels.

Recent Price Movements

Gold rebounded from a low of $3,247 on Monday, achieving a high of $3,358 on Tuesday, marking a five-day high. This movement indicates strength, particularly as it successfully tested resistance near the 20-Day Moving Average (MA) at $3,350. A daily closing price above $3,332 would further confirm bullish sentiment.

Technical Analysis

The article notes that Monday's low coincided with a prior swing low and a downtrend line, suggesting strong support. The recovery above both the rising trendline and the 50-Day MA (currently at $3,320) is seen as a positive sign for the overall trend. A daily close above the 50-Day MA would solidify the bullish implications of this recovery.

Resistance Levels

For gold to maintain its bullish outlook, it needs to decisively rally above Tuesday's high. A close above $3,358 would indicate strength and the potential for further upside, particularly if it can reclaim the 20-Day MA. The next significant resistance level is at $3,396, which, if surpassed, could lead to attempts to break above the recent swing high of $3,451.

Momentum Concerns

Despite the recent gains, the article expresses concern over the slower momentum since the swing low in May at $3,121. For gold to break through previous highs, an increase in bullish momentum is necessary. Without this, the market may experience continued consolidation with minor fluctuations. The current strength in gold prices needs to be supported by robust demand to avoid a potential failure to break above the record high of $3,500.

Conclusion

In summary, while gold is showing signs of recovery and potential bullish momentum, traders should remain cautious and watch for confirming signals of strength. The market's ability to maintain upward momentum will be crucial in determining whether gold can achieve new highs in the near future.