Gold has been forming lower highs and higher lows, consolidating inside a fresh triangle pattern and bouncing off support.
Can it go for a breakout soon?
Check out these nearby support and resistance levels on the 4-hour time frame.
Gold (XAU/USD) 4-hour Forex Chart by TradingView
Shifting market sentiment and dollar trends have been pulling this precious metal in opposite directions over the past few months, as traders had to grapple with tariffs headlines and geopolitical uncertainty.
Still, gold has managed to bounce off its newly-forming symmetrical triangle support at the beginning of the month, suggesting that bulls could keep charging from here.
Will the nearby resistance levels hold or will we see an upside break next?
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!
Price is currently hanging out at the area of interest spanned by the moving averages and R1 ($3,359.92) and appears to be encountering a bit of resistance. If gold bears defend this zone, look out for another dip back to the triangle bottom or at least until the pivot point level ($3,307.88).
On the other hand, a continuation of the climb past R1 and the 100 SMA dynamic inflection point could clear the way for a test of the triangle resistance around the $3,400 major psychological mark.
Sustained upside pressure past that point could even spur a test of R2 ($3,445.67) around the June peak then R3 ($3,497.71) closer to all-time highs. Note that the 100 SMA is above the 200 SMA to hint that buyers have the upper hand for now.
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.
