Gold Gains Momentum – Key Resistance in Sight
Gold (XAU/USD) extended its rally on Wednesday, climbing to 3,321∗∗andreclaimingthe∗∗20−DayMovingAverage(MA)∗∗.Thebullishmomentumsuggestsapotentialpushtowardthenextcriticalresistancezoneat∗∗3,370–$3,375, where:
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The 78.6% Fibonacci retracement level converges
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Two key trendlines intersect
A breakout above this zone could confirm a bullish reversal, signaling further upside potential.
Bullish Reversal Pattern in Play
Gold recently bounced off support from a declining channel’s lower boundary, reinforcing bullish sentiment. Historically, when price reverses from one side of a channel, it often tests the opposite boundary—in this case, the upper resistance trendline near $3,375.
Key Levels to Watch
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Immediate Resistance: 3,370–3,375 (Fibonacci + trendline convergence)
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Breakout Confirmation: A daily close above $3,375 would signal:
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Escape from the current bearish correction
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A second bullish breakout from the long-term rising channel (blue)
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Support Levels: 3,300(20−DayMA),3,250 (50-Day MA)
Weekly & Monthly Bullish Signals
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Weekly Bullish Reversal: Confirmed if gold closes above last week’s high ($3,292)
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Potential Record Weekly Close: A finish above $3,327 would mark a new all-time weekly closing high
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Monthly Consolidation: May has been an “inside month” (trading within April’s range), suggesting bullish consolidation before the next major move
Technical Outlook: Will Gold Break Higher?
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Bullish Case: A breakout above 3,375∗∗couldreignitetherallytoward∗∗3,500+
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Bearish Risk: Failure to hold above 3,300∗∗maytriggeraretestof∗∗3,250
Final Thoughts
Gold’s technical structure remains bullish, with multiple confirmations:
✅ Successful support retest
✅ Weekly reversal signal
✅ Potential breakout above key resistance
Traders should monitor Fed policy signals and inflation data, which could influence gold’s next major move.
