Gold Holds Support at 5160 – Bulls Still Targeting Higher TVC: Gold Prices By mudasir342 — TradingView

Gold Holds Support at 5160 – Bulls Still Targeting Higher Prices

Yesterday’s trading session brought important developments for gold, with the market successfully overcoming resistance near the 5190 area, pushing gold prices to local highs near 5240. Initially, this move appeared to be the start of a stronger upward continuation.

But in typical gold fashion, this breakout was followed by a very violent sell-off. In about half an hour, the market dropped about 800 points, once again reminding traders how quickly momentum can shift in this instrument.

Main technical responses

Despite the sharp decline, the technical structure remains unchanged.

The sell-off found support near the 5160 area, a level that was previously tested multiple times during yesterday’s session. The fact that the market hit this area four times in one day confirms that it represents an important price floor in the short term.

This repeated defense is an important signal. When selling pressure levels absorb multiple times without breaking out, it usually indicates that buyers are actively defending the area.

Continue with previous creation

After falling sharply and holding 160, the market entered a slight consolidation range, which allowed volatility to subside and gave the market time to rebalance.

As of press time, gold prices have resumed their upward trend and are once again trading near the 5220 area.

Current market forecast

From a structural perspective, there are no major changes compared to yesterday’s expectations.

A break above 5190 indicates that buyers are able to push the market higher. The ensuing decline tested the strength of the structure, but support at 5160 remained strong, reinforcing the bullish bias.

As long as this level remains unchanged, the broader picture will continue to favor higher prices.

trading plan

With this in mind, the approach remains clear:

➡️Buying on dips remains the preferred strategy of the day.

The 5160 level became the main technical reference. As long as the market outperforms this support level, a pullback may provide a long opportunity.

If upward momentum continues to gain momentum, the market may attempt to push toward recent highs again, and possibly even break above these highs.

in conclusion

Yesterday’s price action once again highlighted gold’s volatility, with gold prices experiencing a strong escape followed by a rapid sell-off. However, the technical structure behind this volatility remains surprisingly clear.

Holding the support at 5160 and moving higher towards 5220, the bullish outlook remains unchanged.

For now, the plan remains simple:
As long as 5160 remains stable, the focus remains on buying dips and anticipating further gains. 🚀