Peter Smith
⬤ Gold has pushed into critical territory as it approaches a key resistance zone following months of steady gains. The metal is nearing a potential new all-time high, a level that represents both a technical milestone and psychological barrier after sustained upward momentum throughout the year.
⬤ The technical picture shows gold locked in a well-defined uptrend, supported by a rising moving average and consistent higher highs and lows. Price has recently climbed toward the $4,380 area, where previous reactions occurred and liquidity has built up above current levels. This accumulation of resting orders suggests that once price reaches this zone, volatility could spike as these positions get triggered.
⬤ What happens at this level will determine the next phase of gold's movement. A clean break above $4,380 would push the metal into uncharted territory and validate the strength of the current trend. But a quick sweep above followed by sharp rejection could signal exhaustion, potentially marking a temporary top. The key isn't just whether resistance breaks, but how price behaves once it gets there.
⬤ This setup carries weight beyond gold itself. The metal often acts as a barometer for liquidity conditions, macro expectations, and risk sentiment across markets. A decisive move higher could fuel confidence and extend the rally into new territory. A rejection, however, might introduce choppiness not just in gold but across commodities and related assets. With liquidity still elevated, how gold reacts at $4,380 will likely set the tone for whether this rally has legs or needs a breather.
Peter Smith
