GOLD Bounces from Key Demand Zone – Is a Bullish Reversal?

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Gold has just tapped into a strong demand zone around $2,959 - $2,968, a level that previously acted as a base for a major move up in late March.

This current price action aligns with a potential bullish reversal setup, especially after a sharp sell-off into this demand area. Here's the breakdown:

Key Zones to Watch:

Demand Zone: $2,959 - $2,968 (marked in orange)
Price is reacting here again. A bullish engulfing or strong bullish candle here could signal a reversal.

Mid-Level Resistance: $3,061
A break and close above this level will likely confirm strength in buyers and open the path to the next zone.

Supply Zone/Target: $3,120 - $3,141
Major supply area with heavy seller interest. This is the final upside target if bulls maintain momentum.


Bullish Confluence:

Oversold conditions after a rapid sell-off

Strong historical demand zone tested

Clean risk-to-reward setup for long positions

Bullish divergence forming on lower timeframes (check RSI/MACD)


Fundamentals to Watch:
We’ve got several major USD-impacting news events this week (highlighted at the bottom). Watch closely for any Fed-related statements or CPI data that could trigger volatility in gold.

Trade Idea (Not Financial Advice):

Entry: Around $2,960 - $2,970

SL: Below $2,945

TP1: $3,061

TP2: $3,141


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