Gold rebounds after sharp correction, eyes $5,000 resistance

💡 DMK Insight

Gold’s recent surge of over 5% signals a potential reversal, but traders need to tread carefully. After last week’s sharp correction from record highs, the bounce back to around $4,980 suggests dip buyers are re-entering the market. This recovery comes after a dip to $4,402, which could indicate a strong support level. However, the volatility seen in recent weeks raises questions about sustainability. If gold can maintain momentum above $4,900, it might attract more bullish sentiment, but a failure to hold these gains could lead to another sell-off. Keep an eye on broader economic indicators, especially inflation data and central bank policies, as they could heavily influence gold’s trajectory. On the flip side, if the market sentiment shifts due to geopolitical tensions or economic downturns, gold could see renewed interest as a safe haven. Watch for key resistance around $5,000; a break above could signal further upside potential. Conversely, if it slips back below $4,900, it might trigger stop-loss orders, leading to increased selling pressure.