Falling Wedge Breakout Signals Near-Term Upside

Price action confirmed a breakout of a small falling wedge pattern. The initial target from the wedge points to the start of the pattern at the recent swing high of $3,409. A move through that level may lead to testing resistance along the top boundary of a symmetrical triangle consolidation. Traders should watch how gold reacts near $3,409, as it may either encounter resistance or signal a further upside breakout.

Momentum and Swing High Levels

The current short-term upswing began at the recent swing low (C), suggesting momentum may not yet be strong enough to breach the triangle boundary decisively. A daily close above $3,439 would serve as a more definitive breakout trigger, confirming a sustained bullish move. Until that occurs, any advance should be viewed with caution, as breakouts are prone to failure without follow-through confirmation.

Weekly and Monthly Outlook

A breakout above this week’s high would trigger a weekly reversal and add to bullish momentum for gold. Conversely, a drop below $3,268 would undermine the short-term bullish case. On the monthly chart, gold is positioned to potentially end the period at its highest-ever monthly close. Even without a triangle breakout, such a close would be a strong bullish signal for the medium-term trend.

Key Levels for Traders

Traders should monitor $3,409 as the initial upside target and $3,439 as the confirmed breakout level. Support near $3,268 remains critical to watch for potential downside risk. Until either a clear breakout or a failure occurs, gold is in a decision zone that could define the next major directional move.

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