Gold Price Prediction: XAU/USD commences new bull run after breaking out of key technical pattern


  • Gold is seeking higher support, preferably at $1,720 ahead of the upswing toward $1,800.
  • A technical breakout from the falling wedge flipped the trend bullish.
  • XAU/USD will fail to reach the potential target if support at $1,720 and the 100 SMA is broken.

Gold is setting up for a colossal move to highs around $1,800. The world’s most precious metal appears to have flipped from an extended bearish trend to a bullish impulse. XAU/USD recently embraced support at $1,680, paving the way to the ongoing uptrend.

The multi-month downtrend printed a falling wedge pattern amid the calls for recovery. This a bullish chart pattern that usually occurs in a down-trending market. Two trendlines form this wedge, with one connecting a series of descending peaks and then the other connecting a series of descending troughs.

A breakout is expected to occur before the trendlines meet. The 4-hour chart shows gold already having broken out of the wedge and started the upswing toward $1,800. Resistance at $1,740, as highlighted by the 50 Simple Moving Average (SMA), cut short the upswing.

However, XAU/USD embraced higher support at $1,740. For now, the least resistance path is upwards, especially with the bulls slicing through the 100 SMA hurdle.

The Moving Average Convergence Divergence (MACD) reinforces the uptrend as it settles above the midline. An incoming MACD cross would a huge bullish signal. On the upside, overhead pressure at the 50 SMA and the 200 SMA is expected to delay the anticipated breakout.

XAU/USD 4-hour chart

XAU/USD 4-hour chart

On the flip side, gold must hold above the immediate support at $1,720 and, by extension, the 100 SMA to sustain the uptrend. Action under these two key zone would put pressure on lower anchors at $1,700 and $1,680, thus opening the door to massive declines.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD trades sideways below 1.0450 amid quiet markets

EUR/USD trades sideways below 1.0450 amid quiet markets

EUR/USD defends gains below 1.0450 in European trading on Monday. Thin trading heading into the Xmas holiday and a modest US Dollar rebound leaves the pair in a familair range. Meanwhile, ECB President Lagarde's comments fail to impress the Euro. 

EUR/USD News
GBP/USD stays defensive below 1.2600 after UK Q3 GDP revision

GBP/USD stays defensive below 1.2600 after UK Q3 GDP revision

GBP/USD trades on the defensive below 1.2600 in the European session on Monday. The pair holds lower ground following the downward revision to the third-quarter UK GDP data, which weighs negatively on the Pound Sterling amid a broad US Dollar uptick. 

GBP/USD News
Gold price sticks to modest gains; upside seems limited amid USD dip-buying

Gold price sticks to modest gains; upside seems limited amid USD dip-buying

Gold price attracts some follow-through buying at the start of a new week and looks to build on its recovery from a one-month low touched last Thursday. Geopolitical risks stemming from the protracted Russia-Ukraine war and tensions in the Middle East, along with trade war fears, turn out to be key factors benefiting the safe-haven precious metal. 

Gold News
The US Dollar ends the year on a strong note

The US Dollar ends the year on a strong note

The US Dollar ends the year on a strong note, hitting two-year highs at 108.45. The Fed expects a 50-point rate cut for the full year 2025 versus 4 cuts one quarter earlier, citing higher inflation forecasts and a stubbornly strong labour market. 

Read more
Bank of England stays on hold, but a dovish front is building

Bank of England stays on hold, but a dovish front is building

Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures