Gold's daily chart shows the metal completing a corrective pause before what technical analysts read as the final impulse of its bullish cycle. The 4,163.50 level now marks the line between continuation and reversal, with upside targets stretching toward 5,585.00 if it holds.
Gold has already completed the strongest leg of its rally and worked through a corrective pause, according to a technical analysis reading of the daily chart. The metal would now be developing the final impulse of that sequence, with a minor pullback inside it already finished and the next leg higher forming.
The 4,163.50 dividing line
This reading treats 4,163.50 as the level separating the rally's continuation from a change in scenario. As long as the price stays above that mark, the bullish case remains valid. If the scenario plays out, the move's target lies between 4,890.00 and 5,585.00.
A buy scenario with a weekly horizon calls for entry at 4,274.49, targets at 4,890.00 and 5,585.00, and a stop loss at 4,163.50. The estimated time frame runs seven days or more.
What flips the trade
An alternative, conditional scenario takes the other side. A sell trigger would activate on a confirmed breakout below the dividing line, with entry at 4,163.45, targets at 3,951.95 and 3,723.70, and a stop loss at 4,233.95. If the price breaks and holds below 4,163.50, the path opens toward the 3,951.95 zone and, further down, 3,723.70.
Managing the stop loss
Gold keeps a positive bias under this reading, with the base case remaining a buy. But the targets are ambitious and the time frame broad, so 4,163.50 should be taken seriously — losing that level would signal the alternative scenario has taken over. The analysis rests solely on technical indicators; no macroeconomic data or calendar events factored into it.
Source: Investing.com
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