The gold price has fallen to its lowest level in a month, indicating a downward trend in the market. This drop comes after hitting an all-time high of 2,450 and breaking below the 50-day simple moving average (SMA). The price reached a one-month low on June 7, signaling a significant pullback from its record peak.
Recovery Mode
Despite the recent decline, gold has been showing signs of recovery since June 7. The bulls seem to be focusing on the short-term SMA as a potential turning point for the price. If the 50-day SMA is breached, immediate resistance levels could be at 2,388 and 2,430, with a possibility of reaching the all-time high again.
Potential Scenarios
In a bullish scenario, gold could climb back to its previous highs with key resistance levels at 2,388 and 2,430. On the other hand, if the bearish trend continues, the price may find support around 2,223 and 2,145, which have previously acted as both support and resistance levels. A failure to break above the 50-day SMA could lead to further weakness in the market.
The gold price movement is currently in a state of flux, with potential for both bullish and bearish scenarios. The recent pullback from the all-time high has created uncertainty in the market, but the recovery since June 7 shows signs of resilience. Traders and investors should closely monitor the price action around the 50-day SMA to gauge the direction of the market in the coming days. Failure to break above this crucial level could result in further downside pressure on the gold price.