WHY XAUUSD IS BULLISH ?? DETAILED TECHNICAL AND FUNDAMENTALSXAUUSD is currently showing strong signs of bullish continuation after completing a successful retest of the previous breakout zone near the $2,920–$2,950 region. Price action has respected this support beautifully and is now pushing back above $3,040, confirming the bullish structure. This retest and bounce pattern suggests that the market is preparing for a fresh leg higher, with my immediate target set at $3,100. The current structure is aligned with higher highs and higher lows, and momentum is shifting back in favor of buyers.
Technically, the move is clean. The bullish impulse from February to late March created a strong upside leg, followed by a healthy correction into a well-defined demand zone. This demand zone held firm, and the current reaction is supported by increasing volume and bullish candlestick formation on the 12H chart. The inverse head-and-shoulders structure around $2,930 gives this setup even more weight, with a clear breakout above the neckline indicating potential continuation toward higher time frame targets.
From a fundamental perspective, gold remains supported by ongoing geopolitical tensions, increased demand from central banks, and continued inflationary pressure globally. As the market anticipates this week's U.S. CPI data, investors are hedging against uncertainty, which is driving flows into safe-haven assets like gold. The recent pullback in the US dollar index and bond yields is also contributing to upside pressure on XAUUSD, further confirming the bullish outlook.
With both the technical setup and macro drivers favoring upside, I'm looking for continuation toward $3,100 and potentially beyond in the short to mid-term. This area also aligns with the next psychological resistance and projected extension level. As long as price holds above $3,000, any dips should be viewed as fresh buying opportunities. This setup offers an excellent risk-reward ratio for traders looking to capitalize on gold’s ongoing bullish momentum.
