Gold Price Forecast: XAU/USD Builds Toward $3,375 Breakout as Bullish Momentum Grows

📈 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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Yasher Rizwan