Gold Update: Rejection at 3245, Support at 3200—More Downside ?

As anticipated, we’ve seen some rejection around the "New Swing High?" zone , and Gold has pulled back to find support around the 3,200 level. This aligns with the price action we discussed, and the market behaving as expected so far. 🔍

Monday Price Action :
In my last post, I highlighted that Gold was overextended after hitting an all-time high near, with overbought RSI readings on the monthly (84) and weekly (77) timeframes. I expected a correction, and we’ve now seen the price drop from that high to test the 3,200 level, which has acted as short-term support. This pullback reinforces the idea that the rally needed to cool off, and we’re seeing that play out.

View Remains the Same:
Correction Still in Play
My view hasn’t changed—I’m still leaning towards a deeper correction in the near term. While the 3200 level has provided some support, it’s not a major support zone yet. The first significant support remains at the previous swing high of 3,150-3,168, which I expect Gold to test soon. The overbought conditions on higher timeframes still suggest more downside potential before the uptrend can resume. If we break below 3,150, the next support zone between 3,040-3,050 could come into play, where I’d expect stronger buying interest for Intra day.

What to Watch For
-Resistance at last week high: The recent high remains a key resistance. Any rally back towards this level could face rejection again, offering another shorting opportunity.
- Support at 3,150-3,168: This is the next major level to watch. A break below 3,200 could see Gold head straight for this zone,

Final Thoughts :
Gold is playing out as expected, with the rejection from from the zone marked on chart leading to a pullback that found support at 3,200. However, I believe this correction has more room to run, and I’m still targeting the 3,150-3,168 zone as the next key level.