Gold Spot / U.S. Dollar
Long
Updated

Gold Is About to Snap – Will the Breakout Blast Through $3,700?

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By analyzing the gold chart on the D1 timeframe, we can observe that XAUUSD is moving within an ascending symmetrical triangle pattern, with five clearly defined corrective waves that appear to be nearing completion. This structure indicates that the market is currently in a phase of price compression, waiting for a breakout. Notably, the resistance zone around $3,350 is acting as a critical barrier for a potential breakout, while support remains steady around $3,280. The horizontal volume profile shows a strong concentration of activity near the current price range, further reinforcing the expectation that if gold breaks above the upper boundary of the triangle, the next target could range between $3,700 and $3,800 — which corresponds to the height of the pattern. In my view, this presents a promising setup for a trend-following strategy, with an ideal entry point after a confirmed breakout signal on the D1 chart.
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