Peter Smith
⬤ Gold prices are consolidating after a strong rally, with XAU/USD continuing to trade inside a well-defined ascending channel. The market is holding above the channel's midline following a pullback from record highs. Despite recent volatility, the price structure looks solid, suggesting the uptrend hasn't been broken.
⬤ The chart shows a powerful rally that pushed gold to an all-time high near $4,880-$4,900 before pulling back toward $4,780—a key demand zone that previously launched the latest leg up. Buyers jumped in at this level, forming a higher low and keeping the channel structure alive. This bounce confirms the pullback was just a correction, not a reversal.
⬤ Price is now stabilizing above the channel's midline, which continues acting as dynamic support. There's a resistance zone near $4,940 close to the upper channel boundary. As long as XAU/USD stays above the mid-channel trendline, there's room for momentum to rebuild. The setup points toward a potential retest of upper resistance if support holds.
⬤ Trading above the midline of an ascending channel typically signals trend continuation rather than exhaustion. Gold's hold above the $4,780 demand zone reinforces the bullish structure. As the consolidation plays out, traders are watching to see if price can stabilize enough to challenge higher resistance levels while maintaining the broader upward bias.
Peter Smith
