📈 Gold Extends Rally, Targets Key Breakout Zone at $3,375
Gold (XAU/USD) advanced further on Wednesday, reaching an intraday high of $3,321, as buyers reclaimed the 20-day moving average (MA) — a strong signal of renewed demand. The metal is now eyeing a crucial resistance area between $3,370 and $3,375, which includes:
- The 78.6% Fibonacci retracement of the last correction
- The upper boundary of a short-term declining channel
A successful test and breakout above this range could mark a bullish turning point, setting gold on a path toward new all-time highs.
🔁 Technical Picture: Rising Trend and Channel Reversals Support Bulls
Gold recently tested the lower boundary of a descending channel, which acted as support and triggered a bullish reversal. According to technical theory, when price rebounds from one side of a channel, it often aims to test the opposite boundary — in this case, around $3,375.
A move above this level would confirm a breakout from the corrective channel, potentially setting off a secondary bullish breakout above the long-term rising trendline (blue channel) previously breached in early April.
📊 Bullish Continuation Supported by Prior Trendline Breakouts
Recent price action mirrors earlier successful breakouts:
- In late March, gold broke out of a purple channel, which failed initially
- A second breakout on April 10 was more successful and led to the record high of $3,500
- This pullback has now retested the previous breakout zone as new support, a classic bullish confirmation signal
📅 Weekly and Monthly Chart Signals Support Upside Potential
This week also delivered a weekly bullish reversal pattern, confirmed on the daily chart. If gold can close above $3,292 — last week’s high — the signal will be confirmed on the weekly timeframe as well.
Notably, the highest weekly closing price for gold stands at $3,327. Holding momentum through Friday could result in a record weekly close, strengthening the bullish case heading into June.
On a monthly chart, gold remains in an inside candle formation, with May’s price range contained within April’s high and low. This indicates bullish consolidation, suggesting the broader uptrend remains intact.
📌 Gold Price Levels to Watch
| Level Type | Price |
|---|---|
| Resistance | $3,375 → $3,439 → $3,500 (ATH) |
| Support | $3,292 → $3,180 → $3,121 (monthly low) |
🔍 Gold Outlook Summary
- ✅ Reclaimed 20-day MA signals short-term strength
- ✅ Confirmed reversals from multiple channel trendlines
- ✅ Weekly bullish reversal in progress
- ✅ Monthly inside bar pattern shows healthy consolidation
With bullish signals stacking across multiple timeframes, traders will closely watch whether XAU/USD can break and hold above $3,375, which could trigger another leg higher toward $3,439 and $3,500.
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