Gold (XAU/USD) surged past a key resistance level on Tuesday, breaking above the five-day high of $3,266 and reaching an intraday peak of $3,290. This breakout follows a successful retest of the 50-day moving average (MA), which had previously held as support during last week’s correction.
The breakout above the 20-day MA, which had served as overhead resistance, signals renewed bullish interest. With price action holding near session highs, the current momentum suggests potential for further upside — possibly even a new intraday high before the day ends.
🔁 Intermediate Trend Remains Intact — Bulls Regain Control
The broader uptrend in gold appears to have weathered the recent dip, thanks to strong support near the $3,121 swing low. That area aligns with the 50-day MA, and the fact that gold rebounded from this level reinforces its importance.
As long as XAU/USD holds above this 50-day support zone, the intermediate bullish structure remains in place. If current momentum continues, the next target lies near the $3,375 area, where multiple technical indicators converge.
📉 Trend Channel Insights: ABCD Completion and Support Reaffirmed
Since gold hit an all-time high of $3,500 on April 22, the metal entered a controlled pullback, forming a minor declining ABCD pattern. This correction reached its projected downside at $3,140, further validating the strength of support around the rising trend channel’s lower boundary.
The recent test of this lower channel, combined with price action bouncing back aggressively, points to a successful defense by buyers. This kind of behavior is common after false breakouts, and the rebound now sets the stage for a potential rally back to the channel’s upper boundary.
🔼 20-Day MA Holds the Short-Term Key — Watch $3,375 Breakout Zone
A major short-term milestone has now been achieved: gold reclaimed the 20-day MA, which had previously flipped from support to resistance. This move is technically significant and opens the path toward the $3,375 target, where:
- A downtrend line intersects
- The 78.6% Fibonacci retracement aligns (near $3,371)
- The upper boundary of the declining trend channel comes into play
This zone is seen as the next bullish inflection point. If gold manages to break and hold above this area, it could retest its all-time highs.
🔎 Gold Price Levels to Watch
| Type | Level |
|---|---|
| Resistance | $3,290 → $3,375 → $3,500 (ATH) |
| Support | $3,266 → $3,140 → $3,121 (50-day MA) |
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