Gold Forecast: Key Levels Above $3,000

Gold remains persistent in targeting its inverted head and shoulders pattern on the daily timeframe, eyeing the 3,040-resistance.

However, monthly overbought conditions—seen in 2024, 2020, and 2011—raise caution for potential sharp reversals.

• In 2011, an overbought RSI led to a nearly 900-point retracement
• In 2020, a similar overbought condition resulted in a nearly 450-point decline
• In November 2024, another overbought reading triggered a nearly 250-point drop
• Now, gold has once again reached these overbought levels, raising caution for a potential momentum recharge.

Key Events:
🔹Israel-Gaza tensions escalate as the 2-month ceasefire ends
🔹Trump and Putin negotiate a ceasefire with #Ukraine
🔹The US Dollar weakens amid trade war risks, with focus on Wednesday’s FOMC for the long-term outlook

Key Levels:
🔺Above 3,040: The trend could extend to 3,080
🔻Below 3,040: A reversal may test 3,000, 2,955, 2,930, and 2,900

- Razan Hilal, CMT