Gold prices continue to grind higher in a steady uptrend, but traders are now watching for a decisive push above $3,451 to confirm the next leg toward the all-time high near $3,500. Despite bullish structure holding firm, momentum remains the missing ingredient in unlocking the next major breakout.
🔄 Pullback Finds Support, Bullish Structure Intact
On Tuesday, gold prices dipped to a three-day low of $3,366, pulling back modestly from Monday’s swing high of $3,451. Yet, the broader trend remains bullish, with gold still following a classic pattern of higher highs and higher lows since the May low of $3,121.
Technical indicators continue to reinforce this structure:
- The 20-day moving average (MA) at $3,343 aligns closely with a short-term rising trendline, offering strong near-term support.
- The 50-day MA, now at $3,300, serves as key support for the broader uptrend that began earlier this year.
Unless these support levels break decisively, XAU/USD remains biased to the upside.
⚠️ Momentum Missing: Why $3,500 Still Feels Distant
Despite the technical uptrend, momentum has yet to confirm a true breakout. Last week’s rally above the May swing high of $3,439 lacked follow-through, with price action failing to deliver a solid daily close above the breakout zone.
Without increased buying volume and conviction, gold may continue consolidating, frustrating bulls hoping for a quick surge to new highs.
Still, the overall setup favors upside—if momentum kicks in.
📌 Key Level: $3,451 Must Break to Confirm Bullish Continuation
The $3,451 resistance is now the next key battleground. A confirmed daily close above this level would:
- Break above Monday’s high
- Confirm a move above the earlier swing high of $3,439
- Signal a reversal of the brief correction seen in recent sessions
- Open the path toward a test of the $3,500 all-time high
Last week’s highest weekly close further strengthens the case for continuation, assuming momentum returns.
🔍 What Traders Should Watch
✅ Support zones at $3,343 and $3,300 remain crucial for the bull case
✅ A daily close above $3,451 is the trigger for further upside
✅ Watch for a volume surge and momentum confirmation before targeting $3,500
✅ Failure to hold the 20-day MA may shift short-term sentiment
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