Peter Smith
⬤ XAU/USD continues trading near recent highs, maintaining a strong technical structure after a powerful multi-month rally. Gold is currently hovering around $5,171, consolidating in the upper range of its recent move. The overall trend remains firmly upward, with price holding well above the previous breakout area around the $4,300–$4,500 demand zone, which previously acted as resistance before flipping into support.
⬤ The chart shows a consistent bullish structure for XAU, with the market printing higher highs and higher lows throughout the advance. After a sharp rally pushed prices toward the $5,400 region, gold pulled back briefly before stabilizing. Current price action around $5,100 suggests the market is digesting earlier gains rather than reversing the broader trend.
Gold continues trading within a bullish channel structure near $5,182, reinforcing the view that the metal remains in a strong uptrend despite short-term consolidation.
⬤ The highlighted demand zone between $4,300 and $4,500 plays a critical role in the current structure. Buyers continuing to defend this former breakout level signals that the broader trend remains healthy. Technical analysts have pointed to a triangle breakout pattern that could target $7,000 if momentum resumes from this consolidation base.
⬤ Consolidation near the highs typically signals that the market is absorbing prior gains while maintaining bullish positioning. As long as gold holds above the $4,300–$4,500 demand region, the broader uptrend remains intact. Some forecasts go further, with gold eyeing $7K–$8K after a confirmed channel break, suggesting the current pause may be a launchpad rather than a reversal.
Peter Smith
