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As the chart shows, XAU/USD climbed above the $4,000 mark today, a move likely driven by:
→ Weakness in the US dollar index – or a pullback from the resistance level discussed in yesterday’s DXY analysis.
→ Concerns over the ongoing US government shutdown – according to media reports, one consequence has been that American airlines began limiting ticket sales in November.
Technical Analysis of XAU/USD
On 28 October, our analysis of gold price movements showed the following:
→ We constructed an ascending channel (marked in blue), illustrating the metal’s remarkable rally from its August low.
→ We suggested that the developing pullback might target the QL line, reinforced by the round-number support at $3,900.
This support zone successfully held, forming a local bottom at point B, after which the price entered a period of consolidation, resembling a symmetrical triangle pattern.
Notably, gold has today broken upward through this triangle (outlined in black). In the broader context, this breakout represents a strong signal from the bulls, suggesting a possible resumption of the 2025 uptrend.
If buying momentum continues, their strength may be tested by:
→ Resistance at $4,045;
→ Resistance near $4,150, which aligns with the 50% retracement of the A→B decline and has previously acted as a reversal zone for XAU/USD.
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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