Peter Smith
⬤Gold is reacting from a key support level within an ascending broadening wedge on the weekly chart. Price bounced after testing the lower boundary near the $4,100-$4,200 region, with recent candles confirming a rebound following a sharp drop from highs around $5,300.
⬤The XAU structure reflects a strong bullish trend throughout 2025 and into 2026, marked by higher highs and higher lows inside a widening channel. The pullback returned price to structural support that has historically attracted buyers. As seen in Gold Holds $4,980 Support as Rebound Toward $5,030 Looms, defending support tends to keep recovery potential intact.
⬤Technically, everything hinges on whether this support zone continues to hold. A sustained rebound could allow XAU to retest resistance and push back toward the $5,000 psychological level. A similar setup played out in Gold Tests $5,000 as $4,800-$4,600 Demand Zone Comes Into Focus, where trendline reactions defined the next directional move.
⬤Current XAU price action marks a critical inflection point. The bounce confirms active demand, but follow-through is still needed to validate recovery. As noted in XAU Price Analysis: Gold Rally Holds Above $3,000 With No More Than 3 Red Weeks in a Row, sustained bullish trends depend on consistent defense of key levels.
Peter Smith
