Gold Spot / U.S. Dollar
Long
Updated

XAUUSD: Breakout Confirms Bullish Reversal

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Gold has successfully broken out of the descending channel after consolidating around the $3,276 area, signaling a strong return of bullish momentum. The breakout occurred precisely at a confluence of multiple Fair Value Gaps, propelling price toward the $3,357 resistance zone.

Despite a slight rebound in the US dollar, growing concerns over the US fiscal deficit and proposed tax reforms are driving investors back into gold as a safe haven. Meanwhile, US bond yields remain low, and the dollar lacks the strength to suppress gold demand.

As long as price holds above $3,320, any pullback can be seen as a buying opportunity in this newly confirmed uptrend. The next target sits around $3,357, with potential for a move toward previous highs.
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