Gold faces resistance at the 200-Day EMA and 78.6% Fibonacci, monitoring breaks and resistance.

Gold briefly declined to a trend low of 1,911 before recovering. It may have reached the lower end of the day’s price range, with a bearish inverted hammer candlestick pattern. The near-term decline is defined by lower daily highs and lows, potentially triggering further retracement.

Gold is trading around a crucial price support level, potentially signalling a positive reversal. The range includes the 200-Day EMA at 1,908 and the 78.6% Fibonacci retracement at 1,913. Strong monthly support since July at 1,903 is also present. The price structure must be reevaluated if the slide persists and there is a daily closure below the monthly low, relying on a healing process.

Today’s price movement is limited within a smaller range, with a high of 1,921 and a low of 1,911. A decisive rally above today’s high will indicate strength on a daily chart. Gold approaches resistance around the point where an uptrend and downturn converge, approximately 1,924. This initial zone should be easily breached to the upside if the daily breakout is valid.
The next higher resistance zone, from 1,929 to 1,932, is significant due to the 10-Day EMA, downtrend line, and Fibonacci retracement’s bottom. The initial price level is similar, with 1,932 marking the three-day high.

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