Gold (XAU/USD) Price Forecast: Faces Near-Term Resistance After New Record High

ABCD Targets Reached, Resistance Emerges

Gold continued its advance early Tuesday, reaching a new record high of $3,675. Sellers stepped in at that level, driving price down intraday and putting gold in a weakening position. At the time of writing, gold is positioned near the lower third of the day’s trading range. A bearish doji shooting star candle has formed, signaling that a short-term pullback is possible. The intraday low of $3,627 is now key near-term support, and a drop below this level could trigger a one-day bearish reversal typically seen at swing highs.

Support Zones to Watch

Resistance emerged following the completion of two targets from rising ABCD patterns at $3,664 and $3,668. Given the bearish reaction at that zone, a pullback appears likely before gold can resume higher. Initial support is expected to be near the 38.2% Fibonacci retracement at $3,537. Further support areas include the prior record high of $3,500 and the prior swing highs from the symmetrical triangle formation between $3,451 and $3,439. The 61.8% retracement at $3,452 also coincides with that zone, providing a potential strong support area if the pullback deepens.

Triangle Breakout Momentum Remains Intact

Despite the potential for a near-term pullback, gold remains bullish across all higher timeframes. The breakout from the symmetrical triangle last week, combined with the rally to new record highs, demonstrates sustained buying interest. The first multi-day pullback following the breakout will be closely watched by market participants as a lower-risk entry opportunity, and it also helps assess whether demand remains robust.

Outlook for the Next Move

The depth and duration of any pullback should give clues about supply and demand dynamics. Once support zones are held, a rising ABCD pattern is likely to develop, continuing the broader uptrend. Gold’s ability to remain above key swing lows suggests that even during a corrective phase, the long-term bullish trend remains intact. This sets the stage for potential continuation to higher targets in the coming sessions, provided support levels are respected.

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