Upside Targets in Focus

The next potential milestone for gold sits at $3,734, marked by a 161.8% Fibonacci extension derived from the last significant corrective swing. However, this target stands alone without reinforcement from other technical measures, suggesting that the more significant resistance zone lies higher. That zone ranges from $3,782 to $3,812 and includes at least five different technical objectives. Among them is a measured move target from the symmetrical triangle pattern that gold broke out of on August 29, adding technical weight to this area as a potential magnet for price.

Consolidation at Resistance

Even with Friday’s rebound, gold remains in the same broad zone it has occupied for the past nine sessions. A Fibonacci confluence area continues to exert influence as resistance, capping upside momentum and suggesting that further consolidation may be needed before a sustained breakout can occur. The upward slope of recent consolidation, however, shows that demand remains firm and dips continue to attract buyers.

Key Levels on the Downside

Despite the constructive outlook, caution is warranted. A drop below Thursday’s low of $3,628 would undermine Friday’s reversal and open the door to deeper retracement levels. In that case, the first downside target sits at last week’s low of $3,576, closely aligned with the 38.2% Fibonacci retracement level at $3,558. A decisive decline through that area could challenge bullish conviction and shift near-term focus to a corrective phase.

Outlook

Gold’s ability to maintain momentum with a weekly closing above $3,675 further confirms strength in Friday’s bullish reversal. That will be crucial in setting the tone for next week. Sustained strength above $3,707 would shift focus toward the $3,782 – $3,812 target zone, while weakness below $3,628 would reintroduce the risk of a more extended pullback.

For a look at all of today’s economic events, check out our economic calendar.