XAUUSD – Gold Breaks Resistance, Is 4,205 The Next Target?

Gold is showing a strong bullish reaction today.

Price has broken above the previous strong resistance around 4,165 and is now trading near the breakout area. This is an important shift because gold was previously moving inside a lower consolidation structure, but buyers have now pushed price through a key ceiling.

The move is strong, but the next step is confirmation. Gold needs to hold above the broken resistance or retest the support zones before the bullish continuation becomes cleaner.

FUNDAMENTAL ANALYSIS

Gold is currently supported by renewed buying momentum as traders continue to watch USD movement, Fed expectations, yields, and geopolitical risk.

If the U.S. dollar remains under pressure or yields cool down, gold may continue to attract buyers. However, after a fast move higher, short-term profit-taking can appear near resistance.

For now, the chart shows buyers in control, but reaction around 4,165 and 4,205 will be important.

TECHNICAL ANALYSIS – SMC + FIBONACCI

From an SMC perspective, gold has created a strong bullish displacement from the lower buy order trendline area around 4,084.

The first confirmation came when price broke above the buy order resistance around 4,117. After that, momentum expanded and gold pushed directly into the strong resistance zone around 4,165.

Now price is testing whether this resistance can turn into support. If gold holds above 4,165, the next upside target is around 4,205, which aligns with the Fibonacci extension target on the chart.

If price pulls back, the first support to watch is 4,117. A deeper support sits around 4,084, where the trendline and buy order zone are located.

KEY PRICE ZONES

Current price: 4,165
Broken strong resistance: 4,165
Buy order resistance / support: 4,117

Buy order trendline zone: 4,084
Main bullish target: 4,205

Bullish structure valid: Above 4,117
Strong bullish confirmation: Holding above 4,165
Invalidation for short-term bullish view: Below 4,084

TRADING SCENARIOS

Buy Scenario – Priority View

Buy Zone: 4,117 – 4,165
Entry: Bullish retest, rejection candle, liquidity sweep, or lower-timeframe CHoCH
SL: Below the nearest swing low

TP1: 4,205
TP2: Higher extension if momentum continues

Pullback Buy Scenario

Buy Zone: 4,084 – 4,117
Entry: Wait for clear bullish reaction from the trendline or buy order zone
SL: Below 4,084

TP1: 4,165
TP2: 4,205

Sell Scenario – Only If Breakout Fails

Sell is not the main view while gold holds above 4,117. However, if price fails to stay above 4,165 and breaks back below 4,117, the breakout may become weaker.

Sell Condition: Clean break below 4,117 with bearish retest confirmation
Target: 4,084 first

MY VIEW

Gold is showing a much stronger bullish structure today.

The breakout above 4,165 is the key signal. If buyers can defend this zone, the next target around 4,205 becomes very attractive.

However, I do not want to chase after a strong vertical move. The cleaner plan is to wait for a retest of 4,165 or a deeper pullback toward 4,117.

For now, buyers have control — but 4,165 needs to hold.

Do you think gold will hold above 4,165 and continue toward 4,205?