Gold Remains Bullish as Technical Momentum Rebuilds

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Gold’s latest breakout signals a shift in market psychology rather than a simple technical rebound. Traders are rotating back into duration-sensitive hedges as real yields soften and the dollar stabilizes. Monday’s strong bullish candle and a decisive close above the 20-day moving average have reignited systematic buying flows into the metal.

From a technical standpoint, gold’s structure now targets the $4,200 resistance zone, followed by a potential extension toward $4,400 if momentum continues. Support remains near $3,900, which marks the level where trend followers could defend their positions on any pullback.

Macro conditions continue to favor the metal:

US yields have eased slightly, lowering the opportunity cost of holding non-yielding assets.

The US Dollar Index remains range-bound, removing a key headwind.

Global equities show defensive rotation, reinforcing gold’s appeal as a portfolio hedge.

Over the coming weeks, gold’s path will depend heavily on US CPI data, upcoming Federal Reserve communications, and fiscal developments in Washington. Softer inflation or a dovish tone could drive yields lower and sustain gold’s bullish trajectory into December.

However, if inflation surprises to the upside or the Fed pushes back on easing expectations, a short-term correction toward $3,900 may occur. Overall, the trend bias remains positive, but momentum is highly data-sensitive in the near term.

🎯 Summary Target:

Immediate Target: $4,200

Extended Target: $4,400

Support Zone: $3,900

Bias: Bullish (as long as real yields stay contained and USD remains neutral)

 

[HB123]

Wanted your take on my technical perspective on gold. I see the obvious resistance at $4161 and support at $3886 which I have drawn on the chart below. I have also highlighted two yellow boxes inddicating potential bullish fair value gaps that may provide support. However, the point that bothers me from a Volume Price Analysis standpoint is that the previous bullish candle had a very wide spread but the corresponding volume bar indicated by the blue arrow has failed to match the size of the bullish candle move in relative terms. There is also a bearish fair value gap just above the resistance (which I did not draw on the chart) which may exude some momentary downward pressure? Taking the volume price anaysis "anomaly" and the bearish fair value gap above would you consider a brief respite in gold prices in the short term?

I also wanted your opinion on the likelihood of the second chart playing out? I created this chart on October 27th 2025 using fibo clusters to see if where the likely bottom for gold might be. Considering the strong bounce off of the support around $3886 do you think that the lower targets are a possibility or is it simply higher for gold from here?

On the fundamental picture I agree with you in the longer term.