Key Insight: Gold (XAU/USD) remains in a bullish posture as consolidation continues within a developing triangle pattern. Technical support and long-term trend structure point toward the potential for an upside breakout.
Gold Maintains Strength Amid Sideways Price Action
The price of gold (XAU/USD) held steady on Wednesday, trading within a narrow range and forming an inside bar pattern, as it consolidated Tuesday’s gains. The day’s high was capped at $3,385, while the low held firm at $3,358. Over the past few sessions, solid support has emerged near the convergence of the 20-day and 50-day moving averages, now positioned at $3,349 and $3,346, respectively.
This area also aligns with the lower boundary of a short-term symmetrical triangle pattern, offering a technically significant support zone as price coils ahead of its next move.
🔺 Breakout Above $3,439 to Signal Resumption of Bullish Trend
As gold continues to consolidate, momentum remains muted until a clear breakout occurs. A decisive move above $3,439—the most recent swing high—would confirm a bullish breakout from the triangle pattern and could open the door for a rally toward new all-time highs.
- Immediate resistance: Triangle upper boundary near $3,439
- Breakout trigger: Sustained move and close above $3,439
- Bullish target: Potential retest of record highs beyond $3,500
🔻 Support to Watch: $3,345 and $3,268
- The three-day low at $3,345 is a key short-term support. A drop below this level could trigger a retest of the triangle’s lower boundary.
- Further downside could expose the $3,268 level, the most recent higher swing low, which serves as a critical structural support. A breakdown below this level would invalidate the current bullish pattern and may signal a trend reversal.
📈 Weekly Chart Signals Strength Despite Short-Term Consolidation
Despite the sideways movement in the daily chart, the weekly time frame presents a bullish backdrop:
- Last week’s candle printed a bullish hammer reversal, bouncing off the 20-week moving average—a key technical support reclaimed earlier this year.
- If gold closes this week above $3,368, it would mark the second-highest weekly close in history, further reinforcing the bullish outlook.
✅ Outlook: Upside Breakout Favored as Bull Trend Remains Intact
Gold continues to consolidate within a well-defined triangle pattern, but the overall market structure remains bullish, supported by:
- Strong technical support from moving averages
- Bullish price action on higher timeframes
- Global uncertainty and soft central bank policy expectations
Traders will be watching closely for a break above $3,439, which could act as the catalyst for another leg higher in gold prices. Until then, the triangle pattern remains the dominant technical structure, guiding short-term trading decisions.
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