Gold (XAU/USD) Price Forecast: Demand Remains Strong into New Highs

Bulls Sustain Steady Climb

Gold pressed higher on Wednesday, touching a fresh record high of $4,218 as buyers held firm. Trading lingers near the day’s highs, positioning for a bullish closing that reinforces the uptrend. This follows a bull breakout from a near-term rising trend channel, capped by yesterday’s long-term channel penetration above the upper boundary. Today’s action extends and confirms the move, likely sealed by a daily close above yesterday’s $4,180 peak, signaling sustained demand.

Measured Move Targets Upside

The next key upside zone sits around $4,305, where the advance from May’s swing low mirrors the prior 37.8% rally that peaked in April. While not a guaranteed stop, gold’s trajectory—fueled by strong buyer interest—puts this measured move firmly in play. Notably, today’s low of $4,140 successfully tested the top channel line, which flipped from resistance to support after yesterday closed right at it. This seamless transition underscores the breakout’s validity, keeping the path upward clear for now.

Overbought Conditions and Momentum Clues

Gold can grind higher while overbought, and that’s the situation here: the Relative Strength Index (RSI) hovers at elevated levels, paired with a steepening slope in the advance. Behavior near $4,305 will reveal if demand stays robust enough for further gains—watch aggressively for any softening there. If strength persists, an extension of the measured move could redefine higher targets, extending the rally’s reach.

Support Levels and Trend Endurance

Near-term support anchors at today’s low of $4,140; a failure there could spark a pullback. The rising 10-day moving average at $4,018 offers the first dynamic defense, consistently holding as support in this leg up. This marks the eighth straight week of higher highs and higher lows, a testament to the trend’s resilience but also a nod to potential exhaustion—unsustainable momentum often follows such streaks.

Outlook and Key Watchpoints

The breakout confirmation keeps bulls in the driver’s seat, with $4,305 as a logical next step. Yet, overbought readings and the trend’s maturity warrant caution; a close below $4,140 flags risks to $4,018. Today’s session will sharpen the focus—strength here sustains the ascent, while cracks could prompt a healthy breather in this run.

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