Gold (XAU/USD) Price Forecast: Bull Pennant Coils – Triple Trendline Resistance Caps

Wednesday’s Bullish Continuation

Gold continued to strengthen on Wednesday, pushing to an eight-day high of $4,173 and establishing a higher daily high and a higher low. The advance built directly on Tuesday’s successful defense at the 10-day average, converting last week’s multi-day resistance zone into current support and demonstrating classic bullish behavior.

Multi-Line Resistance Cluster

Momentum stayed muted as price met a significant overhead barrier: two separate top ascending trend channel lines plus a short-term downtrend line all converging near today’s high. This triple confluence effectively capped the session and prevented immediate follow-through above the $4,173 area.

Bull Pennant Development

Since October’s $4,381 record high, gold has formed a bull pennant—small symmetrical triangle—consolidation pattern. The 20-day average at $4,068, after moving sideways-to-slightly lower since November 4, has now resumed its rise and is closely tracking the internal uptrend line that connects Friday’s slightly higher swing low, creating tight dynamic support.

Breakout and Confirmation Levels

The first indication of upside resolution appears on a decisive rally above the short-term downtrend line. A true pennant breakout, however, requires a sustained advance and daily close above the recent lower swing high of $4,245 to confirm continuation of the larger uptrend.

Underlying Bullish Characteristics

Consolidation has remained entirely in the top half of the advance and near the upper channel boundaries, reflecting persistent underlying strength. The 50-day average, still untested as support since its late-August reclaim, continues rising below current levels and stands as the ultimate deeper safety net.

Outlook

Gold’s higher high/low sequence and confirmed 10-day support keep buyers in command inside the tightening pennant. A decisive close above $4,245 validates upside continuation toward fresh records; persistent failure to clear the triple trendline resistance risks a deeper test of the 20-day/uptrend line confluence near $4,068, with the untested 50-day as final backstop. The long-term bull trend strongly favors eventual upside resolution unless bearish price behavior negates that outlook.

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