Gold Price Forecast: XAU/USD Holds Above Key Breakout, Targets $3,439 and $3,500 Remain in Sight

Gold prices showed some indecision on Thursday, reaching a new short-term high at $3,403 before reversing sharply. The decline below Wednesday’s low of $3,344, with an intraday dip to $3,339, formed an outside day candle pattern, typically signaling market hesitation. However, technical support at a key descending trendline held firm, keeping the broader bullish structure intact.

🔸 At the time of writing, gold is trading lower on the day and hovering in the bottom half of its range — a sign that prices may consolidate further in the near term before another move higher. Still, this pause could be constructive for bulls, offering a chance for momentum to rebuild.

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🔍 Key Technical Levels and Patterns

• 📈 Breakout Confirmation: Monday’s close above the key swing high of $3,366 confirmed a bullish breakout.
• 🔵 Support Zones:
  • $3,333 (Tuesday’s low)
  • A rising internal trendline that may serve as dynamic support from Friday onward
• 🟣 Resistance Zones:
  • $3,403 (Thursday’s high)
  • $3,439 (next swing high)
  • $3,500 (record high and psychological barrier)

📊 A bullish ABCD continuation pattern remains valid, aiming for a completion around $3,491—which aligns with the record territory.

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📉 Short-Term View: Pullback or Pause?

Gold’s recent price action suggests a healthy consolidation phase, as bulls absorb profit-taking pressure. The fact that gold is still trading above the declining trendline from the previous bearish wave indicates strong underlying demand.

The outside day pattern introduces the possibility of choppy or sideways action before a sustained move, especially as the market awaits Friday’s key U.S. economic data.

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📈 Long-Term Outlook: Bullish Trend Intact

As long as XAU/USD holds above $3,333 and especially above the rising support trendline, the path of least resistance remains to the upside. A clean breakout above $3,403 would confirm bullish momentum, opening the door to $3,439 and potentially the $3,500 all-time high.

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✅ Summary: Gold Bulls Still in Control

• ✅ Trend: Bullish above key breakout zone
• ✅ Support: $3,333 and dynamic trendline
• ✅ Targets: $3,439 – $3,491 – $3,500
• ⚠️ Risk: Failure to hold $3,333 may lead to deeper consolidation but doesn’t negate the bullish trend yet

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