After a sharp drop from around $4,040 per ounce, gold prices have entered a narrow consolidation range between $3,950 and $4,000. The market appears to be in a holding pattern, waiting for a clear catalyst to determine the next major move.
Technical Overview (H4 Chart)
Recent four-hour candles show short bodies with long wicks, a classic sign of indecision. Buyers and sellers are locked in a standoff, each testing the other’s limits. This kind of sideways action often precedes a stronger directional breakout.
Key Technical Levels
- Support: around $3,950
- Resistance: around $4,000–4,010
A confirmed break above or below these levels could trigger a more decisive move in either direction.
Trading Scenarios
Bullish scenario:
If the price breaks and closes above $4,005 on the H4 timeframe, upward momentum could resume.
- Potential Take Profit: $4,045–$4,050
- Potential Stop Loss: $3,980
Bearish scenario:
If gold falls below $3,950, it may extend losses toward previous support levels.
- Potential Take Profit: $3,910–$3,920
- Potential Stop Loss: $3,975
Market Outlook
Gold remains stuck in a tight sideways range following last week’s decline. Traders should stay patient and wait for a confirmed breakout before taking any new positions. Entering mid-range carries higher risk, as the price is likely to remain choppy and directionless until one side gains control.
Disclaimer:
This article is for educational and informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any financial instrument. All trading decisions are made at the sole responsibility and risk of the investor.
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