Gold Technical Analysis: Key Levels and Bullish Momentum
By: Moatasem Adel, Financial Markets Analyst at OneRoyal
Date: March 4, 2025
Current Market Overview
Gold continues to show strong bullish momentum after successfully retesting the $2,834.27 level and rebounding strongly from it. Following this upward movement, gold broke through the critical resistance at $2,882.37, and subsequently retested this level, confirming it as a new support zone.
This confirmation paved the way for a strong rally, creating a notable price gap zone between $2,912.08 and $2,894.42. This price range now acts as a key area for potential price retests, where buyers are likely to step in to defend these levels and initiate a new upward push.
Key Technical Levels
- Support Zone: $2,834.27 (recent low and demand zone)
- Key Retest Level: $2,882.37 (former resistance turned support)
- Price Gap Zone: $2,894.42 – $2,912.08 (potential demand zone on any pullback)
- Next Target: $2,935.31 (key resistance and potential upside target)
Trading Strategy and Recommendations
- Bullish Bias: With the strong buying interest observed near the $2,834 area and the subsequent breakout above $2,882, the technical outlook remains bullish.
- Buy Opportunities: Traders should look for buying opportunities on smaller timeframes if price pulls back into the $2,894 – $2,912 zone and shows clear bullish rejection signals such as bullish candlestick patterns or strong buying volume.
- Upside Target: The primary upside target for this move lies at $2,935.31, where sellers may attempt to cap further gains.
Conclusion
Gold’s technical structure remains bullish, supported by strong buying momentum and key retests confirming new support zones. Short-term pullbacks into previously tested levels could offer attractive entry points for buyers, while the broader bullish trend targets higher levels as long as the $2,882 support holds.
Risk Disclaimer: This information is for educational purposes only and does not constitute investment advice. Financial markets involve risks, and past performance is not indicative of future results. Always conduct your own research and seek professional advice before making investment decisions.
Risk Warning: High-risk investments may lead to total capital loss.
