Remember that ascending triangle pattern we were watching on spot gold prices?
The precious metal just busted through resistance and looks ready for a retest.
Are buyers waiting around these Fibonacci retracement levels?
Gold (XAU/USD) 4-hour Chart Faster with TradingView
After consolidating inside its triangle pattern since the beginning of this month, the precious metal finally decided to make a break for it and capitalize on safe-haven flows stemming from persistent uncertainty.
After all, markets appear to be anxious about U.S. tariffs developments, elevated Middle East geopolitical tensions, and the shifting Fed policy trajectory.
Can these keep bringing further upside for gold?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on gold and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
XAU/USD is hovering around the $5,200 major psychological level right around R1 ($5,197.11) for the time being, probably considering a pullback to nearby support zones to gather more bullish energy.
The Fibonacci retracement tool shows that the 38.2% level is close to the broken triangle support around $5,100 while the 61.8% Fib is near the pivot point ($5,019.85) and triangle bottom, which could be the line in the sand for a correction.
Keep your eyes peeled for reversal candlesticks suggesting a potential bounce off these levels, as a continuation of the climb could take gold back up to the swing high or to fresh upside targets at R2 ($5,285.97) or R3 ($5,463.23) around the January highs.
On the flip side, long red candles breaking below the triangle support and moving averages could point to a selloff possibly reaching the downside targets at S1 ($4,930.99) then S2 ($4,753.73).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art highlights NZD/USD’s range support area. But as any pro will tell you, a great setup can still fail if the trader lacks the discipline to execute around it well.
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