Gold Price Analysis – May 9th, 2025

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Gold is trading within a defined rising channel, attempting to recover from a significant bearish decline. A double bottom pattern has formed at the 3,280 level, establishing key support. Currently, the price is testing the upper trendline resistance near 3,354.

Key Levels:

Resistance: 3,354 and 3,380

Support: 3,321 and 3,280

Price Action Analysis: The recent upward move has formed a higher low structure, indicating potential bullish momentum. A confirmed breakout above 3,354, supported by increased volume, could target the 3,380 resistance zone. Conversely, a rejection at the trendline and a break below 3,321 could lead to a retest of the 3,280 support.

Volume Analysis: Volume has decreased during the recent bullish move, suggesting weakening buying pressure. Traders should monitor for volume confirmation in case of a breakout or rejection to validate directional bias.

Trading Strategy:

Bullish Scenario: Enter long positions on a confirmed breakout above 3,354 with volume support, targeting 3,380.

Bearish Scenario: Consider shorts on a rejection at 3,354 or a break below 3,321, targeting 3,280.

Disclaimer: This analysis is for educational purposes only and is not financial advice. Always manage risk effectively.

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