4 min readGold is currently trading at a significant technical confluence zone. Price is testing a key horizontal level that aligns with the 50% Fibonacci retracement of the latest bullish impulse. Adding to the importance of this area is a long-term ascending trendline that has been active since December, a structure that continues to support the broader bullish narrative, as marked by the green trendlines.
While the high time frame trend remains intact, the local daily structure is beginning to show signs of weakness. The white trendlines highlight a recently formed daily uptrend that is now under pressure, with price creating a lower low during its latest test of support. This suggests that momentum is beginning to fade on the short-term chart.
On the 4-hour time frame, we are currently watching two key levels. Level 2, around $3,295, has just broken to the downside, indicating a local shift in structure. This break confirms a lower low within the previously intact short-term uptrend, as shown by the green lines on the chart.
If this breakdown continues, the next likely area of support sits at level 1 near $3,260, which becomes the key downside target in the near term. However, if the price reclaims the $3,295 level (level 2), that could be viewed as a sign of strength and a possible reclaim of short-term bullish control.
As gold continues to react to macro uncertainty and investor sentiment, this technical zone remains a pivotal area for direction in the coming sessions.
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