Peter Smith
After an initial failed attempt, the second push higher is holding more firmly - raising expectations that a new phase of upside could be underway. Rashad Hajiyev flagged this development early, noting that gold's second attempt to reclaim this key zone looks considerably more convincing than the first.
A Critical $4,670 Level Under Pressure Again
The chart shows gold trading within a broader uptrend defined by a rising trendline that supported price throughout its previous advance. That structure was disrupted when price broke below the trendline and the horizontal level near $4,670 - turning former support into resistance. The first attempt to reclaim this zone failed, confirming it as a meaningful barrier at the time.
Now price has returned to the same area, testing it once again, but with noticeably stronger behavior. For context on how this level developed, XAU/USD Gold Price Analysis: $4,570 Support Level Determines Next Move covers the structural foundation behind this zone.
The Second Attempt Looks Different
Unlike the earlier rejection, the current move shows gold stabilizing around the reclaimed level rather than being pushed sharply lower. Price is consolidating tightly near the $4,650-$4,700 zone, with candles forming in a compressed structure - a sign of reduced selling pressure and a possible shift in control.
Price is holding near resistance instead of rejecting it - an early sign that the level may give way.
The circled region on the chart highlights this stabilization. When price compresses at a resistance level instead of bouncing away from it, it often signals that buyers are absorbing supply - a precursor to a directional break.
Gold's Structure Points to a Potential Shift Higher
The key technical development now is whether $4,670 flips back into support. A sustained hold above this previously broken zone would confirm a classic support-resistance transition - the kind often seen at the start of new impulsive moves. Gold Caught Between Trendline Support and $5,250 Resistance illustrates how these transitions have played out in recent gold setups.
The current structure reflects a market moving from rejection to acceptance:
- Price is no longer being aggressively rejected at resistance
- Consolidation is forming right at the reclaim level
- The second attempt shows stronger holding behavior than the first
This shift suggests the failed breakout has evolved into a potential successful reclaim - increasing the probability of continuation if the level holds.
This setup aligns with broader technical patterns where reclaiming a broken level signals renewed strength. As shown in Gold Tests $5,000 Support After Retreat from $5,600 Peak, similar consolidation near key structural levels has historically preceded larger directional moves in gold.
Gold is now at a technically decisive point. If the reclaim holds, the structure opens the door for continuation higher - confirming exactly the scenario the original analysis pointed to.
Peter Smith
