Gold (XAU/USD) Price Forecast: 10-Day Support Holds – Bull Breakout Building

Core Viewpoint - Gold is showing signs of a potential bullish breakout, with a key resistance level at $4,353 and a confirmed breakout above the previous high of $4,264 [1][4]. Group 1: Bullish Pattern Implications - Gold has recently cleared above the 10-day average, indicating a likely bull breakout above $4,353 [1]. - The breakout above the prior swing high of $4,264 was confirmed with a daily close above it [1]. - Short-term consolidation may occur, allowing the 10-day average to catch up with the price, which would improve the chances for an upside breakout [1]. Group 2: Dynamic Support Layers - The 10-day average at $4,243 serves as the first line of defense for bullish sentiment, supported by a nearby rising trendline [2]. - The 20-day average, slightly lower at $4,195, is also recognized as a key support area by the market [2]. Group 3: Upside Targets - The record high of $4,381 is identified as a key price level for potential upside [3]. - If the recent high of $4,353 is broken and sustained, the record high becomes the next target [3]. - A short-term upside target based on the 127.2% projection of the measured move points to $4,454, with the first key target at $4,516 [3]. Group 4: Outlook - Despite signs of a strengthening bull trend, gold has recently lacked momentum, raising concerns about a possible bearish correction [4]. - A drop below the 10-day average would signal the first warning sign for potential bearish movement [4]. - Until then, a continued range play is expected, with critical levels at the 10-day average and trendline confluence; clearance of $4,353 opens the path to $4,381 and potentially $4,454–$4,516 [4].