After spiking to record highs last month, gold is back in a holding pattern with this ascending triangle on the 4-hour time frame.
Could it be gearing up for a breakout soon?
Check out these potential targets in either direction!
Gold (XAUUSD) 4-hour Chart Faster with TradingView
This precious metal had its fair share of whipsawing price action early this month, reacting to a mix of factors including geopolitical headlines, AI-led tech sector disruption jitters, shifting Fed policy biases, and market panic, to name a few.
Now gold is back in consolidation as traders wait for the next big news. Which way can it go from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and gold, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
XAU/USD just bounced off the triangle support at S1 ($4,907.71) and appears to be setting its sights on resistance around the $5,100 major psychological level.
Stronger bullish momentum past that point could trigger a bullish break, potentially lifting gold to the next targets at R1 ($5,148.55), then R2 ($5,254.37). Keep an eye out for long green candles suggesting sustained upside pressure, which could take price up to R3 ($5,389.40) or onto test the record highs near R4 ($5,524.43).
On the other hand, a return in bearish momentum could lead to another test of support or perhaps a breakdown to the next downside targets at S2 ($4,772.68) then S3 ($4,666.86).
Just be sure to watch out for the release of top-tier U.S. data points, including the advance GDP report and core PCE price index that could strongly influence Fed expectations and overall sentiment.
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.
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