Rising Momentum and Key Levels to Watch

Wednesday’s reversal established a higher swing low, while reaffirming dynamic support at the triangle’s lower boundary line. A rally above last week’s minor swing high at $3,375 would further confirm strength, putting the upper boundary in sight. Beyond that, $3,409 presents an intermediate hurdle. A decisive breakout above $3,439, however, would clear resistance at the top boundary and signal continuation of the broader bull trend.

The consolidation has compressed price energy, building potential for an eventual surge once a breakout occurs. Any sustained upside move should be accompanied by stronger volume and signs of momentum expansion to validate a bullish continuation.

Long-Term Support Remains Intact

Importantly, the recent pullback found support around the long-term 20-Week moving average. That level was also tested successfully in late July, confirming its role as dynamic support. It is not unusual for price to retest such a key moving average before breaking higher. This behavior adds weight to the current rebound and strengthens the argument that gold is preparing for another leg higher if resistance is overcome.

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