Gold Support Near 352-350 - November 4, 2025 #shorts

Key Concepts

• Anchored Volume Weighted Average Price (VWAP)
• 50-day Simple Moving Average (SMA)
• Fibonacci Retracement
• 5-day Moving Average
• Price Action Analysis
• Support Zone

Analysis of Gold's Price Action and Potential Downside Target

The analysis focuses on identifying a potential downside target for gold, specifically within the 350-352 price range. This zone is considered significant due to the confluence of several technical indicators and price action patterns.

1. Anchored VWAP and 50-day SMA Confluence:

• Anchored VWAP: The anchored Volume Weighted Average Price (VWAP) from the beginning of the move (specifically, the low in April) is identified as a key level. This is represented by a "gold colored" line, which is hoped to be a "golden VWAP." VWAP is a trading benchmark that gives the average price a security has traded at throughout the day, based on both volume and price. Anchoring it to a specific low provides a reference point for historical price behavior relative to volume.
• 50-day Simple Moving Average (SMA): Coinciding with the anchored VWAP is the dashed 50-day Simple Moving Average (SMA). The 50-day SMA is a widely watched indicator representing the average closing price of an asset over the past 50 trading days. Its proximity to the anchored VWAP strengthens the significance of this price area.

2. Fibonacci Retracement and Potential 50% Move:

• Fibonacci Retracement: A Fibonacci retracement is applied to the price move from the low of the April-August period up to the all-time high. Fibonacci retracements are horizontal lines that indicate potential support and resistance levels based on the Fibonacci sequence.
• 50% Retracement Level: The analysis highlights that this Fibonacci retracement indicates a 50% move. This 50% retracement level, when combined with the other indicators, further reinforces the 350-352 zone as a critical area.

3. Current Price Action and Bearish Signal:

• Below 5-day Moving Average: The current price of gold is observed to be trading back below the 5-day moving average. The 5-day moving average is a short-term indicator, and trading below it suggests a recent shift in momentum towards the downside.
• Failure to Make Higher High: Crucially, gold has not managed to make a higher high above the 5-day moving average. This failure to establish upward momentum after a potential pullback is interpreted as a bearish signal, indicating a lack of buying conviction.

4. Key Argument and Supporting Evidence:

• Argument: The primary argument is that the 350-352 price zone represents a significant area of support that, if broken, could lead to the "next little leg lower" for gold.
• Supporting Evidence:
  • Confluence of anchored VWAP (from April low) and 50-day SMA.
  • 50% Fibonacci retracement level from the April-August move to the all-time high.
  • Current price trading below the short-term 5-day moving average.
  • Failure to achieve a higher high above the 5-day moving average.

5. Conclusion and Takeaway:

The analysis concludes that the 350-352 price zone is the "important zone for gold." The combination of technical indicators and recent price action suggests that this area could act as a support level. However, the failure to make a higher high above the 5-day moving average, coupled with the price being below it, implies that a breakdown below this support zone could trigger further downward price movement. The speaker is "looking at 350 352 thinking that maybe this is the next little leg lower."