News

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

πŸ“ˆ 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) β€” 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.


πŸ” 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 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.


πŸ“Š 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

πŸ“… 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 β€” last week’s 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 May’s price range contained within April’s high and low. This indicates bullish consolidation, suggesting the broader uptrend remains intact.


πŸ“Œ Gold Price Levels to Watch

Level TypePrice
Resistance$3,375 β†’ $3,439 β†’ $3,500 (ATH)
Support$3,292 β†’ $3,180 β†’ $3,121 (monthly low)

πŸ” Gold Outlook Summary

  • βœ… Reclaimed 20-day MA signals short-term strength
  • βœ… Confirmed reversals from multiple channel trendlines
  • βœ… Weekly bullish reversal in progress
  • βœ… 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.

Stay updated with Daily Forex Pakistan.

Yasher Rizwan

Recent Posts

Silver Price Forecast: Reversal Pattern Signals Possible Pullback Near 14-Year High

Silver nears a 14-year high but shows signs of a reversal pattern, suggesting a potential…

1 hour ago

USD/JPY and AUD/USD Outlook: Trade Talks and China Stimulus in Spotlight

USD/JPY and AUD/USD traders eye progress in trade negotiations and potential China stimulus measures that…

3 hours ago

Gold (XAU/USD) Weekly Forecast: Fed Policy and Tariff Jitters Keep Gold Traders on Edge

Gold (XAU/USD) remains volatile as traders react to Fed policy signals and renewed tariff concerns,…

5 hours ago

USD to PKR Exchange Rate – Opening Market Report (July 21, 2025)

USD to PKR opens steady on July 21, 2025, as traders monitor US economic cues…

6 hours ago

Gold Prices – Opening Rates (July 21, 2025)

Gold opens steady on July 21, 2025, as investors watch global economic signals, Fed policy…

6 hours ago

GBP/USD Outlook: Pound Strengthens Near 1.3450 Amid Dovish Fed Remarks and Mixed UK Jobs Data

GBP/USD edges higher toward 1.3450 as dovish Fed comments support the Pound, despite mixed UK…

3 days ago