Usman Salis
Gold's at one of those make-or-break moments that traders live for. After finding solid footing above crucial support levels, the precious metal is now eyeing a breakout that could unlock significant upside potential. The technical setup is textbook - consolidation above support with liquidity building overhead like a loaded spring ready to pop.
What the Technicals Are Telling Us
Korayy nailed it in his recent breakdown of the action. Gold's been respecting the Monday High at $3,748 like it's sacred ground, with the entire $3,740-$3,748 zone acting as a rock-solid floor. That's your order flow sweet spot right there. The Daily Fair Value Gap support is holding firm at $3,736, giving buyers another layer of protection below current levels.
Here's where it gets interesting - sustained strength above $3,748 opens up a clear path to test the buyside liquidity sitting pretty at $3,792. The chart's telling a story of accumulation, like gold's just coiling up energy before making its next big move higher. As long as buyers keep showing up to defend these levels, the momentum stays bullish.
The Bigger Picture
Sure, the stronger dollar isn't doing gold any favors, but that safe-haven demand keeps bringing dip buyers back to the table. Inflation expectations are still floating around, and with key US data releases on the horizon, volatility could spike at any moment. Add in the ongoing geopolitical mess around the world, and you've got plenty of reasons for investors to park money in gold.
- Support Zone: $3,740-$3,748 - The line in the sand for bulls
- Critical Floor: $3,736 - Daily FVG support, last line of defense
- Breakout Target: $3,792 - Where the real fireworks start if we get there
Conclusion
Gold's setup is pretty straightforward. Stay above that $3,740-$3,748 zone, and the path of least resistance points higher toward $3,792. Break below $3,736, and the bulls might need to regroup. Right now though, all signs point to gold getting ready for its next leg up.
Usman Salis
