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 weekβs 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 β possibly even a new intraday high before the day ends.
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.
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 channelβs 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 channelβs upper boundary.
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:
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.
Type | Level |
---|---|
Resistance | $3,290 β $3,375 β $3,500 (ATH) |
Support | $3,266 β $3,140 β $3,121 (50-day MA) |
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