Gold has shown a strong historical pattern of impulsive rallies followed by significant corrections. After the recent explosive move from the $2,067 breakout zone to new all-time highs around $3,500, representing a +67% rally, the metal appears overextended and due for a healthy pullback.
Past cycles suggest that after such parabolic moves, price tends to retrace back to key demand zones or previous accumulation levels. In this case, the medium-term correction target aligns with the $2,800–$2,750 region — a strong structural support and confluence with the 2024 breakout base.
While the long-term trend remains bullish, this setup hints at a potential mean reversion or consolidation phase. Traders should remain cautious at current highs and watch for signs of distribution and lower highs forming in the coming weeks
Past cycles suggest that after such parabolic moves, price tends to retrace back to key demand zones or previous accumulation levels. In this case, the medium-term correction target aligns with the $2,800–$2,750 region — a strong structural support and confluence with the 2024 breakout base.
While the long-term trend remains bullish, this setup hints at a potential mean reversion or consolidation phase. Traders should remain cautious at current highs and watch for signs of distribution and lower highs forming in the coming weeks
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.