Gold: Testing Support Again as Right Shoulder May Be Forming

Welcome back to another daily technical update on Gold.

Picking up from yesterday’s update, we’re continuing to monitor the potential head and shoulders reversal pattern that’s been developing.

After an initial push to the upside, gold is once again finding resistance near the 0.236 Fibonacci level, a zone we’ve identified as a key reaction area. This latest move may now be forming a local swing high, potentially establishing the right shoulder of the head and shoulders structure. Notably, this potential right shoulder is aligning well with the height of the left shoulder, and the area has been marked with a white arrow on the chart.

At the time of writing, price is once again testing the $3,300 support, which also serves as the neckline of the pattern. Below this level, we have:

• $3,250 – Confluent with the 50% Fibonacci retracement on the higher timeframe
• $3,125 – A broader high timeframe support zone that also lines up with the measured move target if the head and shoulders pattern completes

So far, this reversal scenario remains a possibility, but nothing is confirmed until we see a clean break and close below the $3,300 neckline.

In the meantime, we could also interpret this structure as a developing range, with:

• Range Highs: ~$3,360 (potential shoulder zone)
• Range Lows: ~$3,300 (neckline)

A break in either direction could provide a clear signal of the next major move in gold.

Have a great weekend, everyone. Make sure to manage that risk, and we’ll see you all back here on Monday for a high-timeframe analysis based on the weekly candle close.

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