Saad Ullah
⬤ Gold is catching its breath after a powerful climb, now pulling back to test short-term trendline support. The recent rally pushed XAU through an ascending triangle and then surged higher via an expanding wedge pattern, reaching fresh peaks above $4,000. This pullback to the trendline is pretty normal after such an extended run-up.
⬤ Here's what happened: gold moved through two back-to-back bullish patterns. First came the breakout from a long ascending triangle, then the price accelerated through a broader expanding formation. This combo pushed XAU/USD toward the $4,200–$4,300 zone before things cooled off. Right now, price is consolidating near that rising trendline, hovering around the $4,050–$4,000 area, which is crucial support territory.
⬤ The price action is staying well-behaved technically. This retest is playing out like a classic trend-continuation setup. Staying above $4,000 keeps the broader pattern healthy and the bullish structure intact. The market's basically deciding whether to hold steady here and gear up for another leg higher, or dip a bit more if support gives way.
⬤ Why does $4,000 matter? Because holding above this level keeps the medium-term uptrend alive—the same trend that's been driving gold's performance for months. As long as this support zone holds, sentiment stays positive and XAU/USD remains in sync with the broader strength across major commodities.
Saad Ullah
