XAUBanker

Gold remains in a strong bullish structure on the daily chart, but price action is now approaching a critical juncture where multiple trendlines are tightening and converging. This compression typically precedes a breakout, and given the current macro backdrop, volatility is expected to rise. Key technical levels to watch: Resistance Zones: 4,352 – Psychological level and short-term pivot (PDH and PWH) 4,381 – Upper resistance and breakout target (previous record high). Above 4,381, the path opens toward new record highs. Support Belt: 4,320 – 4,300 – Strong demand zone; as long as this area holds, selling remains unattractive. The price is currently consolidating near the upper channel boundary, signaling potential energy buildup for the next directional move. Macro Drivers & Volatility Risks Today’s calendar is packed with high-impact events that could significantly influence the U.S. Dollar Index (DXY) and, by extension, gold: BoE Interest Rate Decision ECB Interest Rate Decision U.S. CPI Data Initial Jobless Claims These events collectively create a scenario for heightened volatility, as markets reassess inflation trends and central bank policy stances. Trading Scenarios Bullish Breakout: A decisive move above 4,352 will likely accelerate momentum toward 4,381, with potential extension to new record highs beyond that level. Support-Based Entry: If price retraces into the 4,320 – 4,300 belt, this zone offers a favorable risk-reward for long positions.

Gold (XAUUSD) recently broke out of a strong neutral rectangle and cleared the 4260 resistance, delivering an impressive rally that nearly reached new record highs. After this surge, the market is now in a corrective phase, forming an interesting pattern that signals consolidation before the next major move. From the previous weekly low (PWL) to the breakout point at the resistance line, gold delivered a 2.18% rise. Conversely, from the previous weekly high (PWH) down to the current support zone at 4260, the correction measures 2.14%. This near-symmetry between the upward and downward moves often reflects a measured correction pattern, suggesting that the market is balancing prior gains before deciding on the next directional push. Such patterns typically occur in strong trends where price pauses to absorb liquidity and shake out weak positions. Current Market Structure Support Zone: (previous resistance turned support, highlighted in purple on the chart). Resistance Levels: First: 4300 (psychological barrier) Second: 4320 (conservative breakout level) Trend Context: Despite the correction, the broader trend remains bullish, supported by the prior breakout and strong fundamentals. Today’s U.S. economic news could act as a trigger for volatility. If data favors dollar strength, gold may retest the 4260 support zone, offering a prime opportunity for long positions. Conversely, weaker data could accelerate a rebound toward resistance levels.Two positions opened at 4301. TP 1 hit on 4320, runner still active with SL on BE with 4350 as target

Following a fantastic bullish session on Friday, momentum remains firmly in favor of buyers as the market opens today near 4,340, close to the Asian session high. The recent breakout and sustained strength suggest that bulls are likely to maintain control, provided key psychological levels are breached. The strategy for today is simple and aligned with Friday’s analysis: Primary Bias: Bullish continuation. Current Position: Waiting for confirmation before entry. Trigger: Price invading the 4,352 psychological zone. Entry: Buy above 4,352. Targets: First: 4,381; Second: 4,400 This setup leverages the strong upward momentum and aims to capture the next leg higher toward new highs. With bullish momentum intact and fundamentals supportive, the path of least resistance remains upward. Traders should monitor 4,352 closely as the next critical breakout zone. A decisive move above this level could open the door to record highs, while failure to hold above 4,300 may trigger a short-term correction.

Gold (XAU/USD) is currently experiencing a strong bullish momentum, driven by fundamental factors that are supporting its price. Given the current market conditions, we do not anticipate significant pushback in the near term.On the daily chart, gold has been trading within an ascending channel since August 8, 2024. This channel is characterized by a tested lower line (support) that has held multiple times, while the upper boundary has been tested less frequently, indicating a robust upward trend. Within this ascending channel, gold has also traded in two distinct neutral rectangle ranges:- First Rectangle: $2,475 - $2,530. The price remained within this range for 22 days before breaking out, resulting in a subsequent price rise of approximately 5.5%.- Second Rectangle: $2,630 - $2,675. The price was contained within this range for 23 days.On October 16, 2024, gold successfully broke above the second neutral rectangle, signaling a potential continuation of the bullish trend.If gold continues to rise and achieves an additional 5% increase from its current levels, we could see the price target around $2,800 by the end of this month. It is important to monitor this level closely, as it may present a point of reversal or profit-taking for traders.