Gold’s Gann Cycle: Potential Bottom Amidst Rising Resistance

Gold Rebounds as Key Support Holds, Analysts eye Next Move

Gold prices have demonstrated a classic mean reversion pattern, sparking interest among traders employing specific technical frameworks. Following a important downturn earlier in the week, the precious metal found a crucial bottom around the $3300 mark, a level that aligned with a key weekly support indicator. This point of stability triggered a surge in buying interest, propelling gold prices back towards higher resistance zones.

on Tuesday, gold successfully reclaimed levels above its daily Buy 1 indicator, reaching the volatile pivot point for the day. However,the upward momentum faltered here,encountering robust selling pressure near a further resistance level. This resistance proved formidable, leading to a pullback as the week progressed.

Currently trading just below the daily pivot around $3345, gold exhibits a slight bearish inclination in the immediate short term. The outlook suggests that a decisive move and sustained close above the $3356 level will be critical to confirming a bullish continuation. Without this, further consolidation or a retest of lower support levels at $3318 and possibly $3284 could be on the cards.

From a broader cyclical viewpoint, the sharp recovery from Monday’s low could signal a potential cycle bottom. The subsequent retracement is viewed as a natural corrective phase. If gold prices can maintain their footing above $3318, the formation of a higher low could set the stage for a bullish trend, with potential targets extending towards weekly and daily resistance levels at $3417 and $3424 respectively.

Technical indicators, such as the MACD, currently support a period of consolidation, showing divergence that hints at underlying strength. However, the true direction of gold’s next significant move is likely to be influenced by overarching macroeconomic factors. These include evolving expectations for interest rates, significant geopolitical developments, and fluctuations in the strength of the US dollar.

Gold Outlook: Key Levels to watch

Bullish Scenario: Sustained trading above $3356 opens the door for upward targets at $3388 and $3424.
Bearish Scenario: A break and hold below $3318 could lead to declines towards $3284 and the critical support at $3291.
Neutral Zone: The range between $3318 and $3356 is anticipated to be a zone of consolidation, with price action likely to dictate the immediate trend.

This surroundings is notably suited for traders employing disciplined, pivot-based strategies that emphasize patience and confirmation before committing to positions. Understanding these technical levels and the influence of broader economic forces is paramount for navigating the current gold market.

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Trading derivatives, financial instruments, and precious metals involves significant risk of loss and is not suitable for everyone. Past performance is not necessarily indicative of future results.*

How could understanding Gann‘s time cycles perhaps improve the timing of entries and exits in a gold trading strategy?

Understanding Gann Cycles in Gold Trading

H.D. Gann’s theories, while often debated, continue to influence financial markets. At their core, Gann cycles suggest that price movements aren’t random but follow predictable, geometric patterns based on time and price.Applying these principles to gold investing requires understanding Gann’s concepts like:

Time Cycles: Gann believed specific time intervals (days, weeks, months, years) repeat in market trends. Key cycles for gold frequently enough revolve around 360, 180, 90, and 60-day periods.

Price Angles: These are lines drawn on a chart from a notable low or high, representing potential support or resistance levels. The 45-degree angle is particularly important.

Geometric Patterns: Squares of Nine, Hexagons, and other geometric shapes are used to identify potential turning points.

analyzing gold price predictions through a gann lens isn’t about pinpoint accuracy, but about identifying probabilities and potential inflection points.

current Gold Market Analysis: A Gann Perspective (August 2, 2025)

As of today, August 2, 2025, the gold market is exhibiting characteristics that suggest a potential bottom formation within a larger, corrective cycle. We’re observing rising resistance, but also indications that a key Gann cycle is nearing completion.

Here’s a breakdown:

1. Recent Price Action: Gold has faced consistent selling pressure in July 2025, struggling to break above the $2,450/oz level. This resistance coincides with a potential Gann fan line originating from the 2022 low.
2. time Cycle Alignment: A 180-day cycle, originating from the November 2024 low, is projected to complete around mid-August 2025. Historically, these cycle completions often coincide with significant price reversals.
3. Square of Nine Analysis: Applying a Square of Nine to the 2022-2025 gold rally reveals potential support levels around $2,300/oz and $2,250/oz. These levels align with previous swing lows and Fibonacci retracement levels.

Identifying Potential Bottom Signals

Pinpointing a precise bottom is impractical,but several indicators suggest we’re approaching one:

Bullish Divergence: The Relative Strength Index (RSI) is showing bullish divergence – price making lower lows while RSI makes higher lows. This suggests weakening selling momentum.

Volume Analysis: Declining volume on down moves indicates diminishing conviction among sellers. A surge in volume on an up move would confirm a potential reversal.

Fibonacci Confluence: Key Fibonacci retracement levels (38.2%, 50%, 61.8%) are converging near the $2,300 – $2,250 support zone, reinforcing the potential for a bounce.

Gold/Silver Ratio: The gold to silver ratio is currently elevated,historically signaling a potential shift in favor of silver and a possible consolidation or correction in gold.

Navigating Rising Resistance Levels

Breaking through resistance is crucial for confirming a bullish reversal. Here’s what to watch for:

$2,450/oz: The immediate resistance level.A decisive break above this level, accompanied by strong volume, would signal a potential move towards $2,500/oz.

Gann Fan Lines: Monitor the Gann fan lines drawn from the 2022 low. Breaking above these lines would confirm a shift in momentum.

Moving Averages: The 50-day and 200-day moving averages are currently acting as dynamic resistance. A sustained move above these averages would be bullish.

Practical Tips for Traders & Investors

Utilize Gann Tools: Familiarize yourself with Gann’s tools – time cycles, price angles, and geometric patterns – and apply them to your gold trading strategy. Platforms like TradingView offer Gann tools for chart analysis.

Combine with Other Indicators: Don’t rely solely on Gann analysis. Combine it with other technical indicators like RSI,MACD,and fibonacci retracements for confirmation.

Manage Risk: Always use stop-loss orders to protect your capital. Consider scaling into positions to mitigate risk.

Stay Informed: Keep abreast of macroeconomic factors influencing precious metals, such as inflation, interest rates, and geopolitical events.

* Consider Gold ETFs: For investors seeking exposure to gold without physical ownership, gold ETFs (Exchange Traded Funds) like GLD and IAU offer a convenient option.

Historical Case Study: gold’s 2018-2019 Cycle

Between 2018 and 2019, gold experienced a similar pattern of consolidation and rising resistance. Applying Gann’s principles at