Gold Price Forecast: Bounce Potential From Key Support Levels

Author: Bruce Powers

Published: February 17, 2026

Overview

The article discusses the current state of gold prices, which have recently dipped to a seven-day low of $4,842. Despite this short-term vulnerability, there are indications that gold may rebound due to key support levels and Fibonacci retracement targets.

Current Market Conditions

Gold's recent decline has left it susceptible to further downside, particularly if it closes below the previous six-day low of $4,879. This would confirm bearish trends, especially as sellers dominate the market. The trading activity is currently concentrated in the lower third of the day's range.

Support Levels and Bounce Potential

Gold's ability to maintain levels above the lower swing high of $4,655 is crucial. If it does, there is potential for a continuation of the bounce from the corrective low of $4,402 observed two weeks prior. The 50-day moving average, currently at $4,657, is identified as a significant support level, suggesting that it may provide a stronger support area than the swing low at $4,655.

Upside Targets and Fibonacci Levels

The article highlights a recent bullish retracement following a sharp bearish correction after reaching a record high of $5,598 in January. The recent rally peaked at $5,119 before showing signs of weakness, nearly completing a 61.8% Fibonacci retracement at $5,141. If gold can find support before hitting the higher swing low, it may target the 78.6% Fibonacci retracement at $5,345, which coincides with a 100% projection of a rising ABCD pattern, creating a strong price magnet.

Near-Term Outlook

In the short term, gold is expected to consolidate above the 50-day average while remaining below the resistance at the 20-day average. This consolidation phase may dominate price action until a clearer trend emerges.

Conclusion

The analysis suggests that while gold is currently facing short-term challenges, the presence of key support levels and potential for a rebound could lead to higher prices in the near future. Traders are advised to monitor these levels closely for potential trading opportunities.

About the Author

Bruce Powers is a seasoned finance professional with over 20 years of experience in financial markets. He holds an MBA and is a CMT® charter holder, having served as head of trading strategy at hedge funds and as a corporate advisor for trading firms.