Gold Price Outlook: Momentum Builds as Bullish Structure Holds Firm

XAU/USD maintains upward momentum, poised to challenge key resistance levels at $3,396 and $3,451 as bullish momentum strengthens.

Gold prices continued their upward climb on Wednesday, signaling firm bullish sentiment after breaking above both the 50-day moving average and a recent downward trendline. The precious metal is now holding above previous resistance levels, showing resilience and setting the stage for further gains.

Key Indicators Confirm Bullish Control

The current trading range between $3,328 and $3,359 reflects solid buying interest, with gold comfortably holding above short-term technical barriers. These levels—once resistance—are now acting as support, reinforcing the strength of the breakout.

A crucial point of resistance lies at the 20-day EMA, currently near $3,349. A decisive move above Tuesday’s high of $3,358 or a daily close above the 20-day EMA would mark another validation of bullish momentum, likely driving prices toward the next key level of $3,396.

Critical Resistance Levels Ahead

The $3,396 mark represents a prior weekly swing high and stands as the next significant target for bulls. A breakout above this area would trigger a strong bullish signal across both daily and weekly timeframes. Beyond that, the $3,451 level is a critical barrier—previously capping upside attempts. A sustained move above this zone would open the door to a test of gold’s record high.

Outlook for Trend Continuation

Despite recent volatility, gold has reclaimed its place within a rising price channel that began forming earlier this week. This signals that buyers remain in control and the broader uptrend remains intact. Should gold manage a breakout above $3,451, accelerated gains could follow, with the next upside targets seen near $3,578, $3,603, and potentially $3,664.

Weekly Close Will Be Pivotal

With U.S. markets observing a shortened week due to the holiday, gold is still on track to post a bullish weekly close. A close near weekly highs would confirm continued strength and set a constructive tone for the coming sessions. Traders should watch this closely, as the weekly high may serve as the next key inflection point.

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