Market Update: Gold The Battle at 4600After an explosive breakout to new all time highs, Gold is currently in a classic breather phase, sustaining its position remarkably well above the previous ATH. We are seeing a high-tight consolidation essentially a Bullish Flag forming on the daily chart. This suggests that the market is merely digesting recent gains and building the necessary energy for the next leg higher. Despite the broader bullish sentiment fueled by recent geopolitical tensions in Iran and the "Powell Probe" investigation into the Fed, the bulls have hit a temporary ceiling.
The 4600 level has emerged as the immediate line in the sand. On a daily closing basis, we are seeing consistent rejection here; the price is struggling to print a solid candle body above this psychological milestone. For a high conviction continuation, we need to see a clear daily close above 4600. Once this horizontal resistance is cleared, the structural path opens up toward the Monthly R2 at 4731.
On the flip side, the downside remains well protected. The Monthly R1 (4526) area is our primary support zone. As long as we hold above this on a daily close basis, the buy the dip mentality remains the dominant play. The mix of sticky CPI data and safe haven rotation keeps the floor solid, even if the bullish wave continuation requires a bit more patience.
