In the latest market update, we witnessed a decline in gold by 3% and silver by 4% over the week. Last Friday, gold displayed a white candle with a doji, signaling potential distribution around the $2000 mark, leading to profit-taking. Multiple candles closing below their highs indicated heavy selling pressure and a subsequent mini-breakdown saw gold dip below $1990 on Tuesday.
A noticeable gap down, unfilled, added to the bearish sentiment, with a brief reprieve on Thursday being swiftly overturned on Friday. Previous support levels at 1965 and 1940 are now potential resistance zones, marking a shift in the short-term outlook. Looking ahead, if gold hovers around 1910, a potential rebound could be anticipated, with resistance levels between 1955 and 1965.
For a more comprehensive view, the weekly and monthly charts suggest support just above $1900, around $1910. If the market tests this level, a rebound may follow. However, a breach below $1900 could open the door to the mid-1800s, where substantial support exists.
Despite the sector’s need for gold to surpass $2100 for a turnaround, the speaker acknowledges the ongoing pain for investors, emphasizing the urgency of this shift. While expressing optimism about an eventual breakout for gold, the immediate trend indicates a likely downturn in the coming days and weeks.
As the market continues to unfold, the focus remains on gold’s ability to hold around the $1910 level, with the hope that a decisive breakout above $2100 will mark a positive turning point for the entire sector. The speaker encourages viewers to share their thoughts in the comments and pledges to keep a close eye on the developments in subsequent videos.