Watching for First Pullback

Although momentum remains strong, gold is arguably short-term overbought and due for at least a minor pullback. Importantly, this would be the first pullback following the breakout above the symmetrical triangle consolidation last week. The first retracement after a breakout often provides a lower-risk entry relative to the initial breakout, as traders watch for a bullish reversal signal to confirm renewed demand. It also serves as a test to filter out potential false breakouts.

Short-Term Strength Reinforced

Thursday’s brief pullback was quickly rejected, with gold surging to fresh highs the very next day. That swift recovery underscores strong demand and signals that further gains may come before any deeper retracement develops. Barring a sharp reversal, gold looks set to close the week at its highest weekly close ever, adding to last month’s record monthly finish. Global macro factors—including persistent economic uncertainty and a weakening U.S. dollar—continue to underpin the bullish outlook.

Upside Targets and Resistance Zones

Measured moves highlight the upside potential following the breakout. The symmetrical triangle projects a target near $3,786, while the prior measured advance points even higher to around $3,966. On the way, a notable Fibonacci confluence zone lies between $3,664 and $3,668, which could act as interim resistance.

Key Support Levels if Pullback Develops

Should short-term weakness emerge, the first support to monitor is around the prior record high of $3,500. Beneath that, the breakout zone defined by prior swing highs near $3,451 to $3,439 offers additional support. As long as these levels hold, the broader bullish trend remains firmly intact, with higher targets in sight.

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