Gold (XAU/USD) advanced further on Wednesday, reaching an intraday high of $3,321, as buyers reclaimed the 20-day moving average (MA) β a strong signal of renewed demand. The metal is now eyeing a crucial resistance area between $3,370 and $3,375, which includes:
A successful test and breakout above this range could mark a bullish turning point, setting gold on a path toward new all-time highs.
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 β 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.
Recent price action mirrors earlier successful breakouts:
This week also delivered a weekly bullish reversal pattern, confirmed on the daily chart. If gold can close above $3,292 β last weekβs high β 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 Mayβs price range contained within Aprilβs high and low. This indicates bullish consolidation, suggesting the broader uptrend remains intact.
Level Type | Price |
---|---|
Resistance | $3,375 β $3,439 β $3,500 (ATH) |
Support | $3,292 β $3,180 β $3,121 (monthly low) |
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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