Weekly Gold Bottom Complete, Two Levels Separate Confirmation of Correction's End

Technical analyst Tom Zarix, founder of the Zarix School, confirmed the completion of gold's weekly bottom following an extended correction, considering October 8th as the point where selling pressure in the market was exhausted.

Zarix identified two crucial levels to end the correction, as the metal requires daily closes above $4,181.79 first, followed by $4,227.85, to confirm the end of the downward wave.

He noted that breaking past both levels would pave the way toward major weekly resistance near $4,602.57, while identifying deeper weekly support in the range of $3,930 to $3,882 should prices decline again, levels traders consider a clear map for the metal's movement in the coming weeks.

This technical analysis comes as markets focus on US inflation data and the upcoming Federal Reserve decision, two factors that could determine the stability of the bottom formed by the metal during the recent correction. Analysts link chart signals with the movements of yields and the dollar in predicting the next price direction, with many Arab traders relying on reading these levels to organize their moves in the metals market.

What Do These Terms Mean?

Weekly Bottom: A low price level on the weekly timeframe considered a stopping point for the decline, and its confirmation signifies the potential start of a new upward phase.

Resistance Level: A price where an upward move halts due to a high volume of sellers, and breaking above it opens room for further gains.

Correction: A temporary price decline within a general upward trend, considered a natural part of market movement.