Gold (XAU/USD) is holding steady near record highs, pausing after a sharp rally earlier in the week. Prices traded in a tight range on Thursday, consolidating around the $3,675 level. While underlying demand remains strong, technical signals hint at the possibility of a short-term pullback before the next breakout attempt.
Gold Holds Near Record Highs
Spot gold moved between $3,613 and $3,649 on Thursday, marking its second consecutive session of lower highs and lows. This follows Tuesday’s bearish shooting star candlestick pattern, a signal that often precedes corrective declines. Despite this, the yellow metal continues to hover close to its record peak, suggesting buyers remain active on dips.
Resistance and Potential Retracement
Gold recently hit an important resistance zone, where multiple measured move targets aligned near $3,675. The market’s bearish reaction confirmed the zone’s importance, raising the likelihood of a near-term correction.
- A break below $3,613 could extend the pullback toward $3,537, aligning with the 38.2% Fibonacci retracement.
- Deeper declines may retest the $3,500 area, reinforced by the 50% retracement at $3,495.
Role of the 20-Day Moving Average
The 20-day moving average, now rising near $3,465, remains a key trendline. Gold has not tested this support since its breakout from a symmetrical triangle in late August. A dip toward this level could attract fresh buyers, offering a healthy reset within the broader uptrend.
Weekly Breakout Remains Intact
Despite short-term risks, gold is on track to close the week above $3,600, confirming a fresh weekly breakout. This reinforces the longer-term bullish structure. A decisive break above the $3,675 record high would reignite momentum, with the next resistance zone projected around $3,734.
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