Gold Prolonged Bullish Momentum Meets Correction
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Gold Prolonged Bullish Momentum Meets Short-Term Bearish Correction

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Azeez Mustapha

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Market Analysis – December 21

Gold has maintained a strong bullish trajectory since forming a significant low in early October 2023. This uptrend has driven prices through multiple resistance levels. Notably, the price surged past the critical demand level at $2,228.10, showcasing robust bullish momentum.


Gold Key Levels

Demand Zones: 2228.10, 2071.70, 1806.10
Supply Zones: 2464.20, 2682.60, 2866.90

Gold Prolonged bullish momentum meets short-term bearish correctionGold Long-Term Trend: Bullish

After breaking out from the demand level at $2,228.10, gold entered a consolidation phase before surpassing the initial supply zone at $2,464.20. The rally continued toward the next major resistance level at $2,682.60, with the price slightly exceeding this zone. However, as the market attempted to sustain higher movements, bearish tendencies emerged, resulting in a failed high pattern.

This failed high indicates a shift in market sentiment, signaling the start of a bearish retracement within the broader bullish trend. While the daily Moving Average reflects bearish momentum, this movement is viewed as a corrective phase rather than a reversal of the overall uptrend.


Gold Short-Term Trend: Bearish

In the short term, gold prices have faced increasing bearish pressure. A prominent double-top pattern has formed on the daily timeframe high, offering a clearer signal of the market’s direction. This has coincided with a structural shift, tilting the short-term trend toward bearishness. Despite the current bearish momentum, this correction aligns with the overall bullish market structure.
Gold Prolonged bullish momentum meets short-term bearish correctionThe retracement is expected to find support at key levels consistent with the prevailing uptrend. Once support is established, the market is likely to resume its upward trajectory, with new higher highs anticipated, reaffirming the long-term bullish outlook. By monitoring the best forex signals and technical indicators, traders can stay informed of potential market opportunities during this corrective phase.

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