Price promotion now depends on the trader’s response to the short -term pivot point for $ 3083.65. Holding above this level could activate a movement back to $ 3111.02 and possibly a retest of $ 3167.84. A persistent movement under $ 3083.65 and a break under the low point of Thursday at $ 3054.19 would confirm the reversal pattern, which sets a deeper correction for the initial support at $ 3000.28. The 50-day advancing average at $ 2939.52 remains a critical level, in which the trend is arranged in the longer term and acts as a potential dip-purchasing zone.
EL-erian flags rising recession and inflation risks
Macro problems continue to support the case for gold. Allianz Chief Economic Advisor Mohamed El-Erian warned Friday that the chance of an American recession has risen to 50%, driven by delay in growth and aggressive trade policy. He also noted that the inflation expectations are increasing, with core -pce – the preferred factories of the FED – that make its biggest monthly profit in more than a year.
Despite the price of markets in four tariff reductions, El-Erian pushed back on that point of view, which suggests that only one or possibly no-can come true. If the FED remains restrictive while growing growth, the real yields can alleviate a tail wind for gold prices.
Gold prices forecast: Correction can buy opportunities
While gold is confronted with technical weakness in the short term, the wider trend Bullish remains. Increased inflation, rising opportunities for recession and stress for the stock market will continue to support the safe port of the metal.
A withdrawal to $ 3000 or even the 50-day MA of around $ 2940 can present value for DIP buyers. As long as gold above this support applies in the longer term, the market retains an upward potential, with a break above $ 3111.02 that probably breathe new life into the Bullish Momentum.