On Wednesday (October 30), during the European trading session, the gold price once surged to $2,788, just about $10 shy of the crucial psychological level of $2,800, marking a recent high. Gold bulls have been active over the past few weeks, pushing prices upward steadily. However, as gold approaches the $2,800 psychological resistance, analysts warn there may be a pullback. History suggests that when gold stalls near key psychological levels, bulls often wait to regroup momentum before establishing a new upward trend.
Throughout this year, gold has embarked on a strong bullish trend supported by the Federal Reserve's accommodative policies. Important psychological levels such as $2,000, $2,400, $2,500, etc., have formed significant support or resistance zones in the market. Every time the price breaks through a new integer level, it often experiences a brief oscillation or pullback. This pattern also applies to the current $2,800 level. Analysts indicate that if $2,800 shows noticeable resistance, a bearish correction channel may form in the short term, pulling the price back to the support level around $2,750.
Currently, $2,750 has transformed from resistance to support. If the price holds this support level during a pullback or finds a bottom in the higher $2,758 region, it will lay the groundwork for subsequent bullish movement. Compared to aggressively chasing highs, analysts suggest investors closely monitor whether this support level is effectively maintained.
Despite the challenging resistance at $2,800, the bull trend remains technically dominant. As long as prices stay stable above previous lows, the market may continue the overall upward trend. The next move for gold will depend on the breakthrough at $2,800, which could determine the extent of the pullback and the potential for subsequent rises in the coming weeks.
