Gold Technical Analysis Summary

The recent analysis of gold prices indicates a slight decline of approximately 1.12% on the day, following a robust rally that peaked at $5,249.87. Currently, the price is hovering around $5,167, which is near the midpoint of its trading range.

Key Technical Levels

• Current Support Levels: The price remains above the 100-hour moving average (MA) at $5,018.97 and the critical 61.8% Fibonacci retracement level at $5,141.61. These levels are crucial for maintaining a bullish outlook.
• Upside Resistance: After surpassing the February 11th high of $5,116.73, gold initially targeted $5,235. Traders are now focused on whether gold can regain momentum to retest the $5,235 to $5,250 zone.
• Secondary Support: Should the price drop below the Fibonacci level, the next significant support is the previous high of $5,116. Holding above these levels is essential for a positive market sentiment.

Downside Risks

If gold fails to maintain its position above the 61.8% retracement level, attention will shift to the 100-hour moving average, currently around $5,081–$5,082. This moving average has historically acted as a reliable support level, as evidenced by previous trading patterns.

Summary for Traders

The current strategy for traders is to adopt a "wait and see" approach. If the support levels at $5,141 and $5,116 hold, the market may continue to trend towards recent highs. Conversely, a breach below these levels could indicate a deeper correction towards the 100-hour moving average.