Gold prices tested a critical support zone between $4,500 and $4,594 today, putting its broader upward trend at risk.
The metal fell to a new low of $4,500 during Thursday’s trading session. It broke below its 100-day moving average and a rising trend channel, reaching a 61.8% Fibonacci retracement at $4,540.
The 100-day average, now near $4,594, had provided key trend support since October 2023. Gold’s current position below this average and the channel top indicates downward pressure. A quick recovery is possible, but failure to reclaim the level could mean further drops.
A higher swing low at $4,402 offers key structural support. If the 100-day average fails, a break below $4,402 would confirm a trend breakdown. This would shift focus to lower targets, starting with the $4,253 Fibonacci retracement level.
Buyers could respond to the $4,500 low, potentially creating a new higher swing low. Initial upside targets include a higher swing low at $4,882 and the 50-day moving average near $4,974.