Important support levels for world gold prices are at 2,956 USD and 2,924 USD, while a breakthrough of over 3,058 USD/ounce could pave the way for new records.
After climbing to an all-time high on March 20, world gold prices suddenly decreased in price in the session of March 21, reaching a 3-day low of 2,999 USD before boosting slightly.
Notably, gold prices have shown signs of weakening as the range of fluctuations has gradually narrowed in recent sessions.
The $3,043-$3,058 zone has been identified as a potential resistance zone based on technical indicators. Although gold has surpassed $3,043, it cannot go further due to strong selling pressure, which has slowed down the uptrend.
The decline in gold prices to a 3-day low shows that selling pressure is increasing. If this trend continues, gold prices could check important support levels.
The first support level is at 2,956 USD, followed by 2,946 - 2,945 USD, where the 20-day moving average and the Fibonacci retracement rate converge at 50%. Further, the deepest down target according to technical analysis could be an uptrend at $2,924.
Despite increased selling pressure, a strong recovery above $3,058 will weaken negative signals, opening up opportunities for gold to set a new peak. In that case, gold prices could head towards the $3,080/ounce area - the convergence point of the uptrend line and important indicators.
The gold market is at a decisive time when the gold price listed on Kitco on March 22 (morning of March 23, Vietnam) was at 3,024.4 USD/ounce. Analysts are concerned that last week's decline may be just a slight correction before continuing the gold price trend to reach a new peak.
