Usman Salis
⬤ Gold kicked off today's session on a strong note, climbing to $4639 after successfully defending the $4573 support zone yesterday. The rally looks solid, but there's a problem – price is stalling just under the $4640 mark. Today's US trading session will tell us if buyers can muscle through this resistance and keep the momentum going.
⬤ If gold manages to crack above $4640, we could see another leg higher. But here's the thing – a pullback wouldn't be surprising at all. The cleanest scenario would be a healthy dip back down to consolidate around the $4570-$4580 channel support before making another run at higher prices.
⬤ After that consolidation phase, the daily chart setup suggests a breakout is in the cards. Just keep in mind that Friday afternoon profit-taking could mess with the trend. The levels that matter right now are $4640 resistance, $4675 on the daily timeframe, and that $4570-$4580 support pocket. As long as gold stays above those lows, the bullish bias stays alive.
⬤ Gold is sitting at a make-or-break level at $4640. The uptrend stays in play as long as support holds, but breaking resistance is what matters for the next push higher. Watch those key zones closely – they'll signal whether we're heading for a breakout or just another fake-out.
Usman Salis
