Gold price remains firm near record highs as bullish momentum builds above key breakout zones. Traders eye fresh upside targets amid strong demand and technical confirmation.
🔹 Market Snapshot
Gold (XAU/USD) continues its impressive run after staging two significant breakouts over the past week. The yellow metal remains resilient above $3,200, reflecting ongoing demand amid global economic uncertainty and intensified safe-haven flows. At the time of writing, gold trades near $3,233, holding within Monday’s price range ($3,208–$3,246).
🔹 Key Technical Breakouts Fuel Bullish Sentiment
The breakout above two trend channels—confirmed by both daily and weekly closes—marks a crucial turning point. Gold first cleared a long-standing resistance channel (purple trendline), followed by a breakout above a narrower, short-term channel (blue trendline).
These breakouts validate a shift in price structure from consolidation to bullish continuation, with buyers defending previous resistance-turned-support at the top of both channel lines.
📉 Short-Term Support Levels to Watch
Despite the bullish setup, short-term caution may be warranted below the following levels:
- $3,194: Monday’s session low – a drop below this could indicate weakness.
- $3,173: Friday’s low – a key support for the ongoing rally.
- $3,168: Previous breakout zone (April 3 high) – a crucial bull market structure level.
- $3,086: 20-Day Moving Average – also near the top of the broader breakout channel.
A break below these zones may prompt profit-taking or consolidation before resuming upward momentum.
📈 Upside Price Targets: What’s Next?
With bulls firmly in control, technical projections highlight multiple price zones as potential targets:
| Target | Reason |
|---|---|
| $3,298–$3,306 | Fibonacci extensions from short-term swings |
| $3,335 | 261.8% long-term extension from 2011 high |
| $3,355 | 200% projection from ABCD pattern off 2018 low |
The $3,335 level may carry added weight due to its connection to long-term technical structures from previous bull markets.
📊 Weekly Chart: Bullish Engulfing Confirms Trend
Gold’s weekly chart recently printed a bullish engulfing candlestick pattern, closing at an all-time high. This classic technical signal often precedes extended bullish runs and reinforces confidence among institutional and swing traders.
📌 Final Thoughts: Bull Run Intact – Consolidation Likely
Gold’s trajectory remains firmly upward, with strong support holding and volume confirming trend strength. While minor pullbacks are possible below $3,200, the path of least resistance is still to the upside. A clear break above $3,246 could accelerate the rally toward $3,300 and beyond.
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