Hello Traders! 👋

What are your thoughts on Gold?
After spending several weeks trading inside a well-defined range, price has finally reached the upper boundary of that consolidation. This resistance zone also coincides with the upper boundary of the short-term ascending channel, creating a strong confluence area where selling pressure could emerge.

The preferred outlook is for price to undergo a corrective pullback from this resistance toward the lower boundary of the ascending channel. Such a move would represent a healthy correction within the broader uptrend rather than a trend reversal. If buyers step in around channel support, the market could regain bullish momentum, paving the way for a breakout above the range highs and a continuation toward higher upside targets.

A secondary, less probable scenario is that price breaks above the current resistance before any meaningful correction takes place. While this outcome remains possible, the confluence of resistance overhead makes it the less favored scenario.

Overall, the medium-term outlook remains bullish as long as the highlighted support zone and more importantly, the key psychological and structural 4,000 level continues to hold. As long as this support remains intact, any corrective move should be viewed as a pullback within the prevailing uptrend, with the potential to provide the foundation for another leg higher.

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