Gold (XAUUSD) is approaching key technical levels that could determine its price trend. Over the past few weeks, gold has been forming an ascending triangle, signaling the possibility of a bullish breakout.
Gold Holds Trendline, Faces Key Resistance
Gold has maintained an upward trend since April, consistently forming higher lows. Horizontal resistance in the $3,440 to $3,451 range has capped breakout attempts, with the current price at $3,434.69 just below this resistance. Daily charts indicate increased buying pressure, yet a breakout remains unconfirmed.
Analysis of Current Gold Movement and Parameters
Recent price action shows that gold respects the uptrend structure. The last pullback found support at approximately $3,428.03, highlighting the strength of the current bullish base. Although gold fell by 0.1% in the last 24 hours, this minimal adjustment signals ongoing market caution.
Expectations and Potential Breakout Targets
Despite the structure suggesting bullish continuation, confirmation is necessary. Experts note that a clean close on the daily candle above the $3,451.62 resistance level is crucial, preferably with higher volume and strong momentum. Without it, any penetration above resistance risks becoming a false breakout. Prices may continue to move sideways until a clear direction is established.
Gold is waiting for breakout confirmation, with short-term direction hinging on how the market reacts to the key resistance level. The potential upside target for a successful breakout is estimated between $3,730 and $3,750.
