Gold Market Standard Deviation Report
Date: Febuary 12, 2025,
Prepared by: Patrick MontesDeOca
Target Audience: Gold Market Analysts, Traders, and Investors
Gold Futures (/GC) Market Report
The gold futures market is showing signs of consolidation near the $2933 level, just below the key VC PMI Daily pivot of $2936. As traders assess the next move, gold sits at a crossroads—either breaking higher toward resistance levels or retreating to test support zones.
At the start of the session, gold opened at $2928.5, reaching a high of $2936.5, but has struggled to gain momentum beyond this pivot level. With sell-side pressure evident at $2936, gold traders are keeping a close eye on whether this resistance will hold or give way to a stronger push toward the next upside target at $2966.
Resistance Zones in Focus
If bullish momentum gains strength, the next major resistance zone sits at $2966 (Sell 1 Daily), which aligns with a previous supply zone. Should this level be breached, gold could extend its rally toward the Sell 2 Daily level at $2998. However, traders should be cautious—this area represents a critical profit-taking zone where short-term sellers may step in to cap further gains.
Downside Risks and Key Support Levels
On the other hand, if the market fails to hold $2936, selling pressure could drive gold lower toward $2904 (Buy 1 Daily), a key support zone where buyers may attempt to regain control. A break below this level could open the door for further declines, testing $2874 (Buy 2 Daily) or even the VC PMI Weekly support at $2867—a level that has historically acted as a strong floor for prices.
Momentum Indicators: A Shift in Sentiment?
The MACD indicator is currently in bearish territory, with a reading of -8.85, while the signal line sits at -8.06. However, the MACD histogram is contracting, suggesting that bearish momentum may be weakening. If the MACD crosses into positive territory in the coming hours, it could signal a shift in sentiment, confirming a potential breakout above the pivot level.
What’s Next? Trading Scenarios to Watch
Bullish Breakout: A sustained move above $2936 could attract fresh buyers, targeting $2966 as the first upside objective. If momentum continues, a rally toward $2998 is possible.
Bearish Rejection: A failure to hold $2936 could trigger a pullback toward $2904, with further downside risks to $2874 if selling pressure accelerates.
Final Thoughts
At this stage, the market is at a technical inflection point. The battle between bulls and bears is unfolding around $2936, making this a decisive level for short-term price action. Traders should remain cautious of false breakouts and use stop-loss strategies to manage risk.
With volatility on the rise, the coming trading sessions will be crucial in determining whether gold finds enough strength to break higher—or if the bears regain control, pushing prices back toward lower support zones.
Risk Disclaimer: Trading futures involves significant risk of loss and is not suitable for all investors. Ensure proper risk management strategies are in place before making trading decisions.