- Gold forms an ascending triangle, signaling potential for a bullish breakout.
- Resistance at $3,451.62 remains unbroken as price tests upper boundary.
- Breakout confirmation depends on strong daily close with volume support.
Gold (XAUUSD) is approaching one of the major technical levels which could determine its next significant price trend. Gold has spent the past few weeks constructing a solid accumulation-style pattern, as bulls slowly begin to take control.
Now, market participants are closely watching the formation of an ascending triangle—a bullish technical setup that often precedes a breakout when confirmed with a decisive move above resistance. With prices pressing against the upper boundary near $3,451.62, a breakout could bring fresh momentum into the market.
Gold Holds Trendline, Faces Key Resistance
Gold has maintained an upward-sloping trendline since early April, with higher lows consistently forming along this support. Meanwhile, the horizontal resistance around $3,440 to $3,451 has acted as a ceiling, capping price attempts at breakout several times. The current price of $3,434.69 places gold just below this resistance. Daily candles show increased buying pressure, yet a definitive breakout remains unconfirmed.
An interesting detail from recent price action is that even on intraday volatility, gold did respect the uptrend structure. The recent pullback found support at about $3,428.03—highlighting the strength of the current bullish foundation. Analysts note that while gold fell by a mere 0.1% in the last 24 hours, this minimal adjustment signals ongoing market caution as against reversal.
Gold Awaits Breakout Confirmation as Traders Stay Cautious
Although structure shows bullish continuation, confirmation is still required. Experts point out that a clean close on the daily candle above the $3,451.62 resistance level, preferably with higher volume and strong direction momentum, is crucial. Without it, any penetration above the resistance has the risk of becoming a false breakout.
The 24-hour price action also indicates the indecision in the market, with trading largely stuck between $3,428.03 and $3,451.62. Until convincingly crossing that higher threshold, buyers appear unwilling to venture either way.
If the breakout is made, estimates have the potential upside target of between $3,730 and $3,750, in accordance with the triangle’s measured move. Without confirmation, however, prices can just keep on moving sideways in this range. Gold is now wait-and-see, with short-term direction hanging in the balance depending on how the market reacts to this key resistance level.
