Bullish indicating open at $55-$60, IPO prices at $37
Gold has entered the new trading week under heavy selling pressure, erasing much of the vertical rally that topped out at $3,534.1 last Friday.
This area is particularly important because it aligns with Weekly Buy 1 support at $3,415, making it a dual daily-weekly confluence zone.
Right now, gold is sitting at a tactical battleground—a double confluence of VC PMI and Gann levels that will likely dictate the market’s next 48 hours.
Gold has entered the new trading week under heavy selling pressure, erasing much of the vertical rally that topped out at $3,534.1 last Friday. The breakdown began when price failed to hold above the VC PMI Daily pivot at $3,490, triggering a cascade of selling that sliced through Daily Buy 1 support at $3,446 and now finds the market hovering just above the Daily Buy 2 zone at $3,401.
This area is particularly important because it aligns with Weekly Buy 1 support at $3,415, making it a dual daily-weekly confluence zone. Historically, this type of alignment in VC PMI levels often acts as a short-term inflection point—either producing a sharp mean-reversion bounce or, if broken, unleashing further downside momentum.
From a Gann perspective, last week’s high coincided with a minor cycle crest, and this week’s early trade is unfolding in what could be the descending phase into the next time pivot. If the 360-day cycle structure holds, this decline may represent a smaller harmonic within a broader distribution phase before a late-summer or early fall cyclical low.
The Square of 9 price mapping shows $3,401 as a mathematically significant square-off level to the recent $3,534 high, adding weight to this support zone. A sustained break below here could quickly open a path toward $3,374–$3,355, which is the next Square of 9 vibration line below current trade.
Momentum studies are firmly negative, with the MACD reading at -2.12 and the histogram deep in bearish territory. Volume on the sell-off is elevated, suggesting that liquidation is broad-based rather than just a lack of buyers.
If buyers can defend the $3,401–$3,415 range and push price back toward the Daily VC PMI at $3,490, it would signal that the mean reversion process is underway. However, failure here could accelerate the decline and shift the focus toward deeper weekly and cycle-based support levels.
Right now, gold is sitting at a tactical battleground—a double confluence of VC PMI and Gann levels that will likely dictate the market’s next 48 hours.
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