Gold has managed to stay above the $5,100 per ounce mark recently, but now faces a critical test of strength as prices approach $5,200–$5,300 resistance levels. If buyers can’t push through these zones soon, some analysts warn that the recent bullish momentum could weaken and lead to a notable correction.
According to market strategist Razan Hilal from Forex.com, gold’s technical picture has echoes of earlier phases of this rally, but without a break above those key resistance points — especially around $5,200 and $5,300 — the market risks losing steam. A failure to clear these price barriers may leave gold vulnerable to a deeper drop.
What Could Happen If Resistance Holds
- Sustained selling pressure around the $5,200-$5,300 levels might lead to profit-taking and reduce bullish conviction across markets.
- Without renewed upward momentum, technical indicators could shift into bearish territory — potentially pulling prices back toward $4,800 or even as low as $4,380 per ounce.
This scenario reflects how sentiment can quickly change if key breakout points remain untested or are repeatedly rejected.
Why Some Bulls Remain Hopeful
On the upside, gold prices have been buoyed recently by a combination of factors:
- Safe-haven demand sparked by global economic uncertainty and trade policy concerns has helped lift gold prices.
- Broader market dynamics — including potential interest rate adjustments and continued geopolitical tensions — still support a bullish backdrop for precious metals in the medium term.
However, without a clear push above resistance levels and sustained buying interest, the current rally may lose its edge.