Gold stabilizes after steep correction, uptrend intact amid geopolitical risks

💡 DMK Insight

Gold’s recent volatility is a wake-up call for traders: here’s why. After hitting record highs near $5,600, the sharp correction to around $4,705 signals a potential shift in market sentiment. The nearly 10% drop to $4,402 indicates strong selling pressure, but the subsequent recovery suggests dip-buying interest is alive. Traders should keep an eye on the $4,600 level as a critical support zone; a sustained move below this could trigger further selling, while a bounce could signal a bullish reversal. This volatility in gold could also impact correlated assets like silver and cryptocurrencies, particularly if investors seek safety amid market uncertainty. But here’s the flip side: the rapid recovery could be a trap. If gold fails to maintain momentum above $4,700, we might see a retest of lower levels. Watch for volume spikes around these price points, as they could indicate institutional interest or panic selling. Keep your charts ready for the next few days; the market’s reaction to these levels will be crucial.