Gold (XAU/USD) Price Forecast: Breaks Out Toward Record Territory

Breakout Above July Highs

Gold broke out of a symmetrical triangle on Friday with a move above July’s high of $3,439. The advance reached a two-month high of $3,450, positioning gold to close at its highest weekly and monthly closing prices on record. This behavior highlights growing demand, and today’s close above $3,439 will confirm the bullish breakout.

Key Resistance Levels Ahead

Despite the breakout, confirmation of further strength remains essential. The next key resistance is the all-time high at $3,500. Sustained trade above June’s high of $3,451 would improve the odds of new record highs. A monthly high close provides encouraging evidence that bulls are in control, but maintaining momentum through these critical resistance levels will be important.

Measured Move Targets

From a technical perspective, the triangle projects potential upside targets near $3,820 and $4,053. The first target is based on direct price measurement, while the second is percentage-based. In the nearer term, an initial resistance zone emerges between $3,578 and $3,595, defined by the confluence of two indicators. This price area could serve as the next milestone for buyers if a new high in gold is confirmed.

Support from Long-Term Averages

Gold’s latest upswing also benefited from strong trend support. The recent downswing found buyers at the 20-Week moving average, and the prior swing low also found support at that line. Each rebound from this average confirms solid underlying demand and reinforces the integrity of the broader bull trend. These repeated reactions show that investors continue to defend long-term support levels.

Demand Must Confirm Breakout

While technical projections point to higher levels, targets are the least reliable element of analysis and require confirmation through continued strength. Also, breakouts, even when clear, can fail if demand slows. Risk management remains critical for traders navigating the move. Still, the clarity of the triangle, combined with Friday’s breakout, suggests that strong momentum should follow. Sustained strength above $3,451 would firmly establish gold’s path toward new record highs.

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