Gold Price Analysis: Testing 50-Day SMA Signals Potential Shift
Amidst a backdrop of market fluctuations, the gold price currently hovers near the monthly low ($1976), marking a third consecutive day of weakening. A crucial juncture emerges as the potential for a break or close below the $1973 (78.6% Fibonacci retracement) to $1977 (50% Fibonacci extension) range raises the likelihood of a descent towards $1937 (38.2% Fibonacci extension).
Unveiling the Technical Landscape
The November low ($1932) stands as a pivotal point; a breach opens the path to $1886 (23.6% Fibonacci extension) to $1897 (61.8% Fibonacci retracement). However, a resilient gold price may align with the positive slope of the 50-Day SMA ($1967), maintaining strength above this moving average.
Critical Levels to Watch
For a potential reversal and upward momentum, a break or close above $2018 (61.8% Fibonacci extension) becomes crucial, reigniting interest in the $2076 (78.6% Fibonacci extension). Beyond that, attention shifts to the vicinity around the yearly high ($2147).