Gold Technical Outlook: Key Levels and Weekly Scenarios

Gold recently traded near 3,885, positioning itself beneath a descending trendline originating from the 5,602 peak while remaining under the 4,084 Fibonacci level. Market observers are weighing two distinct technical scenarios for the precious metal as it hovers below these significant resistance barriers.

The bearish outlook relies on a sustained rejection at the active trendline paired with a weekly close falling below 3,614. Under this trajectory, the metal risks establishing a pattern of lower highs and lower lows, pointing toward a potential descent to 3,144. Conversely, this negative thesis would be invalidated should the price achieve a weekly close above both the trendline and the 4,084 threshold.

On the other hand, the bullish scenario depends on a decisive weekly close above the descending trendline followed by a successful retest of that zone as established support. Should buyers accomplish this technical confirmation, price targets extend upward to 4,084, with subsequent resistance zones identified between 4,666 and 4,697. This positive setup would be canceled if prices break downward past the 3,614 mark.