Gold futures are currently trading in bearish territory according to today’s TradeCompass levels. The price is holding below several critical support levels, including the Value Area Low of March 5th at $2,919.8, the VWAP at the close of March 6th at $2,919.9, and the Value Area Lows of March 4th and Friday at $2,914.6 and $2,914.8, respectively. With prices holding below these key levels, the case for continued downside pressure is strengthened.
If gold futures rise above $2,925.2, a shift toward a bullish bias could occur as this level represents Friday’s Point of Control (POC). However, significant resistance exists just ahead between $2,930 and $2,932.2. This tight resistance cluster suggests that even if bulls push above, the upside potential may be limited. Profit-taking and supply could quickly emerge within this heavy resistance zone.
A clear breakout above $2,935 could open the door to further gains, but the path is not easy. Given the bearish structure, traders favoring the short side may consider several downside levels for partial profit-taking, including the 1st Lower Standard Deviation of VWAP (March 4th), below the psychological level and near the 2nd Lower Standard Deviation of VWAP (March 4th), the 3rd Lower Standard Deviation of VWAP (March 4th) and February 6th Point of Control, and a deep target near the Value Area High of February 3rd.
Gold futures in bearish trend
A move toward these levels would represent a major decline of over 80 points, potentially unfolding over the week rather than intraday. This aligns with a potential retest of a lower channel boundary on the daily chart, reinforcing the larger bearish orientation. The daily chart for Gold Futures (GC) shows a bearish breakdown, with the price crossing below the red diagonal support, indicating weakness.
The potential move is toward the bottom of the ascending channel, but confirmation is needed with a sustained move below $2,900 to strengthen the bearish case. The overall bias remains bearish, with a downside move likely if the price remains below the broken support. In conclusion, the tradeCompass bias for gold futures remains bearish, with the price trading in bearish territory and struggling to reclaim key levels.
Bulls need a breakout above $2,925.2, but resistance at $2,930 to $2,934.8 could stall upside attempts. Bears have multiple targets to the downside, with deeper objectives also in play.
