In yesterday’s post and video, gold was rebounding off its 100-hour moving average, with the next upside target set at the prior week’s highs near $4381.48. The market did indeed extend to that level but met strong selling pressure, prompting a shift in momentum.
Since then, downside momentum has accelerated, particularly after a decisive break below the 100-hour MA (now at $4272.63). The move lower has carried prices sharply toward the next key support zone, defined by the “correction zone” or 38.2% to 50% retracement of the move up from the October 9 low to yesterday’s high — spanning $4162 to $4213. Also in focus is the 200-hour MA at $4168, which aligns closely with this support region.
The low today hit $4165.63, sitting just below the 200-hour MA and slightly above the 50% retracement of the recent rise. Buyers are currently trying to defend this area, but a sustained move below would increase the bearish bias, exposing downside targets at the 61.8% retracement ($4110), the $4100 psychological level, and a swing area near $4059.
Conversely, if support holds, traders will look for a rebound toward the broken 38.2% retracement at $4213. A move back above that level would give buyers more confidence that a short-term base has formed and that yesterday’s high may mark the upper boundary of the correction rather than a trend reversal.
