Gold prices experienced a slight dip on Thursday, pulling back towards the $3,500 level after reaching a record high of $3,578 on Wednesday. While the price has paused temporarily, the overall trend remains bullish, with the strong demand for gold still intact, keeping higher breakout targets in play.
Gold Takes a Breather but Long-Term Momentum Stays Bullish
The price of gold saw a minor retracement on Thursday, falling to $3,511—just below Wednesday’s low. However, it quickly rebounded to the upper half of the session’s range, suggesting that buying interest remains strong. The pullback tested the $3,500 level, which previously acted as resistance and is now expected to act as support. If the price dips further, this $3,500 level will be the first key support to monitor, as it holds critical importance in maintaining the bullish trend.
Breakout Targets in Focus: $3,779 and $3,966 on the Horizon
Wednesday’s surge to a new all-time high of $3,578 marked the completion of the first target from a rising ABCD pattern within the recently broken symmetrical triangle consolidation. This breakout was further confirmed by the long-term Fibonacci extension at $3,563. Last week’s close above the July 21 swing high reinforced this bullish momentum, signaling that gold is set to continue its upward trajectory.
Looking ahead, the measured move projections indicate potential upside targets of $3,779 and $3,966, based on the triangle breakout and the rapid advance preceding it. Although short-term hurdles, including the Fibonacci confluence zone around $3,662, must be overcome, the broader bullish trend remains intact, and a continuation higher is expected once these obstacles are cleared.
Weekly and Monthly Trends Confirm Bullish Momentum
Beyond the daily chart, this week’s price action has further confirmed gold’s strength. The formation of a higher weekly low reinforces the underlying bullish trend, creating additional short-term support. With last month’s record close and the weekly breakout poised to hold above $3,500, gold’s long-term bullish outlook remains strong. A weekly close above $3,500 will mark another milestone, confirming the ongoing demand for the yellow metal.
Near-Term Hurdles and Key Support Levels
In the short term, gold will need to surpass the $3,662 resistance level, derived from Fibonacci confluence, to maintain momentum towards the next targets. Any pullbacks towards the $3,500 support area should be seen as buying opportunities, with the trend likely to continue higher once the $3,662 hurdle is cleared. Despite the risk of a consolidation phase, the combination of daily, weekly, and monthly breakout signals suggests that buyers remain in control and are likely to sustain the rally in the coming weeks.
Gold Price Technical Overview
- Current Price (XAU/USD): $3,511
- Previous High: $3,578
- Key Support Levels: $3,500 (previous resistance now acting as support)
- Near-Term Resistance: $3,662 (Fibonacci confluence level)
- Target Zones: $3,779 (first upside target), $3,966 (second upside target)
Conclusion: Gold Bullish Trend Remains Intact
Despite the minor pullback, the overall outlook for gold remains extremely bullish. The market is seeing strong demand, driven by factors such as geopolitical uncertainty, rising Fed rate cut expectations, and continued economic challenges. With a breakout above key resistance levels and potential for continued gains, traders should stay focused on further upside targets while keeping an eye on key support zones to maintain a positive outlook for the precious metal.
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