Bullish Pattern Implications

Since gold only recently cleared above the 10-day average, the trend patterns in gold show a likely bull breakout above $4,353 on the horizon. The breakout above the prior interim swing high of $4,264 last Thursday was confirmed with a daily close above it. Short-term consolidation may continue for a few more days, giving the 10-day average a chance to catch up with price. Once it does, the chance for an upside breakout improves.

Dynamic Support Layers

Potential dynamic support near the 10-day average, now at $4,243, is the first line of defense for the bulls. Its potential significance as a support zone is strengthened by the near-term rising trendline nearby. The 20-day average is a little lower at $4,195 and it too has been recently recognized by the market as a key area for possible support.

Upside Targets

The key price level on the upside is the record high of $4,381. If last week’s high of $4,353 is broken to the upside and sustained, the record high becomes the next potential breakout level. A short-term upside target from the 127.2% projection of the measured move points to $4,454, while the first key target is at a 127.2% extension of the recent bearish correction, at $4,516.

Outlook

Gold has lacked momentum recently despite further signs of strengthening of the bull trend and positioning as one of the strongest assets in 2025. This keeps it suspect for a possible surprise bearish correction. A drop through the 10-day average would be the first warning sign. Until then, expect continued range play with the 10-day and trendline confluence as the critical hold; clearance of $4,353 opens $4,381 minimum and the path to $4,454–$4,516.

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