Gold Price Forecast (XAU/USD): Consolidation Forms Triangle Pattern as Bullish Momentum Holds

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.

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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.

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🔺 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

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🔻 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.

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📈 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.

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✅ 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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