Gold Price Forecast: Short-Term Trends and Analysis
Published on July 8, 2025, by Bruce Powers, this article provides an in-depth analysis of the current trends affecting gold prices, particularly focusing on the challenges faced by gold in maintaining its upward trajectory.
Current Market Conditions
Gold prices have been under downward pressure, failing to reclaim the 20-Day Moving Average (MA) for six consecutive days. The highest price recorded on the day was $3,346, which fell short of the 20-Day MA currently positioned at $3,349. The previous day's high of $3,343 was briefly surpassed before sellers regained control, leading to a drop below Monday's low.
Bearish Indicators
The formation of a bearish engulfing candlestick pattern indicates potential further declines. A daily close below Monday's low of $3,296 would confirm bearish implications for the short term. The recent price action has created a lower swing high on the daily chart, suggesting a possible lower swing low could follow. The established swing low at $3,247 and an interim swing low at $3,245 are critical support levels; a breach below these could intensify selling pressure.
Potential for Bullish Reversal
Despite the bearish outlook, a breakout above last week's high of $3,366 could signal a bullish reversal. This would not only reclaim a weekly high but also break through the short downtrend line and the 20-Day MA. The overall uptrend, which began from the November swing low, remains intact unless prices fall below $3,245. Key resistance levels to watch include the June lower swing high at $3,451, with an interim resistance at $3,396 that must be surpassed first.
Consolidation Patterns
The article also discusses the formation of a large bull pennant pattern, indicating that gold may continue to consolidate within this pattern for an estimated two to three weeks before a potential breakout occurs.
Conclusion
In summary, the gold market is currently facing significant resistance and bearish signals, but there remains a possibility for a bullish reversal if key resistance levels are breached. Traders should closely monitor the support levels and the potential for consolidation as they navigate the market.