Gold has extended its breakout aggressively and is now trading directly into a major supply zone near the recent highs.

The bullish continuation scenario from the previous setup played out successfully, but the market has now reached a much more difficult area. Price is no longer trading in open space. It is testing a zone where sellers previously became active and where the next meaningful reaction is likely to develop.

The rally has also been supported by a sharp shift in the macro backdrop. Friday’s U.S. employment report showed a surprise loss of 23,000 jobs in July, while June payroll growth was revised sharply lower. That pushed Treasury yields and the U.S. dollar down and reduced expectations for a Federal Reserve rate increase in September. Gold responded immediately, extending its weekly gain to nearly 7%.

At the same time, geopolitical uncertainty remains supportive. Renewed tensions around the Strait of Hormuz and wider Middle East risks continue to reinforce gold’s safe-haven appeal, even as oil markets remain volatile.

Technically, however, momentum alone is not enough to justify chasing the move here.

The 4,340–4,370 supply zone is the first area where buyers may begin to face meaningful resistance. A failure to establish acceptance above this region could trigger a controlled pullback toward 4,230–4,250, which would be the first important support created by the latest breakout.

A deeper correction would bring the 4,110–4,130 demand zone back into focus, although that would require a more significant loss of bullish momentum.

The bullish scenario remains valid if price can secure a clean breakout above supply and hold above it. In that case, the market could reopen the path toward the next psychological levels above 4,400.

For now, the key question is no longer whether gold has momentum.

It does.

The question is whether buyers can maintain that momentum once price reaches a level where sellers have a reason to respond.

Do you think gold breaks straight through supply, or does the market need a pullback first?