Technical Analysis on goldGold has recently experienced a strong upside move, primarily driven by heightened geopolitical tensions, which fueled safe-haven demand. This aggressive move resulted in a gap-up opening, leaving an unfilled gap around the 4508 level, which remains an important technical magnet.
From a technical perspective, price is currently trading within an ascending structure but is showing signs of compression near the upper boundary, suggesting potential exhaustion. A short-term triangle / consolidation structure is forming, indicating that a decisive move may be imminent.
The key level to watch is 4565.
A sustained break and acceptance below 4565 would confirm a shift in momentum and strengthen the bearish case.
If the rising trendline is broken, it would signal bearish continuation, with increased downside momentum likely to follow. In such a scenario, price could retrace further to fill the unfilled gap near 4508, which aligns with prior demand and liquidity.
From a fundamental standpoint, while gold initially rallied on geopolitical stress, recent developments suggest some easing in risk sentiment. Reduced escalation and a softer geopolitical tone have slightly cooled safe-haven flows, supporting a short-term bearish bias unless new risk catalysts emerge.
That said, the bullish scenario remains valid if geopolitical tensions escalate again. In such a case, renewed safe-haven demand could push gold higher, with a potential breakout above the previous ATH and extension toward the 4670 zone.
Summary
Bullish above trendline & resistance break → potential ATH continuation toward 4670
Bearish below 4565 & trendline break → downside continuation toward 4508 gap fill
Market currently at a decision point, awaiting confirmation
⚠️ As always, wait for confirmation and manage risk accordingly.
