Gold Price Forecast: $4,426 in Sight as Bulls Defend the $4,300 Breakout
Gold (XAU/USD) is trading around $4,344 on the 4-hour chart, still on the upswing after blasting clean through $4,300.
Quick overview
- Gold (XAU/USD) is currently trading around $4,344, having successfully broken through the $4,300 resistance, which has now turned into support.
- The price action indicates a steady build-up rather than a frantic rush, with strong closes and no sharp rejection wicks near the highs.
- Key trend indicators, including the 50-period and 100-period EMAs, are rising and support the ongoing bullish trend.
- As long as gold remains above $4,300, the outlook is positive, with potential targets between $4,385 and $4,426.
Gold (XAU/USD) is trading around $4,344 on the 4-hour chart, still on the upswing after blasting clean through $4,300. That level, which had been putting the brakes on price earlier this month, has now quietly shifted to become support. The latest candles are showing nice, strong closes followed by a brief pause – a pattern that suggests steady building up rather than a mad dash for cash.
The thing that really stands out is the lack of any sharp, sharp rejection wicks near the highs. That suggests buyers are still firmly in the driving seat, even as the market takes a little time to catch its breath & digest the gains it’s made. For traders, this sort of price action usually means continuation rather than a crash.
Gold (XAU/USD) Trend Structure Still Looking Good
When you look at the trend from this angle, what you get is a gold market that’s still clearly respecting the big, broad up-channel that’s been in place since mid-November. Price is still holding above the key trend indicators:
- The 50-period EMA is hanging around $4,239
- 100-period EMA is around $4,201
These moving averages are rising and still stacked up in a neat little line, which reinforces the big-picture trend. And to add to that, a median trendline within the channel also shows just how steadily the price has been grinding higher – no sharp spikes to the highs but a nice steady climb.
We can use the Fibonacci extensions from that most recent upswing to find the next likely zone: it lies between $4,385 and $4,426, where some prior technical resistance & extension levels converge.
Gold (XAU/USD) Support is Strong, and Momentum is With Us
On the downside, things aren’t looking too bad either:
- Very near immediately, support is at $4,300
- If we go a bit deeper, secondary support is around $4,270
- And if it gets really desperate, even deeper support is lurking at $4,218
So even if the market pulls back a bit, it’s still very much within the bounds of a healthy bullish structure. And the momentum indicators back me up on that. The RSI around 68 shows extreme buying pressure but doesn’t yet reach extreme levels, suggesting the rally still has plenty of room to run.
Gold (XAU/USD) Short-Term Outlook
As long as gold stays above $4,300, the path of least resistance is still higher up. And if we do get some consolidation around these current levels, it may be the market taking a bit of a breather before heading back up. But for now, the trend remains intact, and buyers are firmly in charge.
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