Peter Smith
⬤ XAU gold is currently moving inside an ascending broadening wedge on the daily chart while holding firm above a long-term rising trendline. The price is keeping its structural support despite some recent back-and-forth action. The overall bullish setup stays valid as long as price doesn't break below that key trendline.
⬤ The pattern shows expanding price swings, but it's still making higher lows along the diagonal support line. That trendline sitting around the $4,100 zone keeps acting as a major structural floor, with several bounces proving buyers are still stepping in. We've seen similar behavior before when gold held above key support.
⬤ Inside this wedge, what we're seeing looks more like continuation rather than reversal. The top edge marks resistance while the bottom guides where the trend is heading. This kind of consolidation within a bullish framework was also covered when gold maintained its bullish channel structure.
⬤ Why does this matter? Because the market is respecting structure instead of breaking it. As long as that rising trendline holds, the bullish setup stays in play. But if price drops below that support, it would damage the trend and potentially kick off a corrective move. Right now, the $4,100 area is the line in the sand - hold it, and bulls stay in control. Break it, and things could shift quickly.
Peter Smith
