XAUUSD has just staged a strong rally, surging past a resistance zone that had previously capped the price multiple times. Trading above the EMA34–EMA89 cluster indicates that short-term momentum has decisively shifted in favor of the buyers.

The 4,115–4,150 zone is the area to watch now. If any upcoming pullback holds above this level and forms a rejection wick or a bullish engulfing pattern on the H2 timeframe, the former resistance zone could officially flip into support.

Once the breakout structure is confirmed, I expect gold to push past 4,180–4,200 and extend its gains toward the 4,220–4,250 target range, with 4,250.914 being the most notable level.

The macroeconomic backdrop also supports this bullish outlook, as the US Dollar and US bond yields weaken while the market awaits further labor data to assess the likelihood of continued Fed rate hikes. A lower-yield environment is helping gold maintain its appeal.

Buy zone: 4,115–4,150
Confirmation: Bullish reaction on H2 and holding above 4,115
Primary targets: 4,220–4,250
Invalidation: Clear H2 close below 4,100