Gold recently broke above a longer-term trend line and appears to be forming a reversal pattern on its 4-hour chart.
Any chance of seeing confirmation soon?
Check out these inflection points and potential targets!
Gold (XAU/USD): 4-hour
Gold (XAU/USD) 4-hour Chart Faster with TradingView
The precious metal appears to be pulling up from a months-long slide, as it rallied above a descending trend line that had been capping gains since late August.
Price is stalling from its breakout but is also finding some near-term support around the pivot point ($4,146.22).
Are gold bulls ready to charge from here?
Gold has been putting up a good fight against the strengthening U.S. dollar thanks to safe-haven flows stemming from elevated Middle East tensions, as markets remain nervous about a possible U.S. strike on Iran.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on gold and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The upcoming U.S. CPI release could still determine whether or not XAU/USD can gain traction on its climb, potentially completing an inverted head and shoulders pattern around the $4,200 neckline if the numbers disappoint.
Sustained bullish momentum past the area of interest could take gold up to the next bullish target at R1 ($4,245.90) then R2 ($4,297.17) near the $4,300 major psychological resistance and 200 SMA.
On the other hand, another strong U.S. inflation print and hawkish commentary from Warsh could extend the precious metal’s selloff to the recent lows at S1 ($4,104.95) or lower.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Gold just broke above a months-long descending trend line, but if you’re not sure how traders decide whether a breakout like this has real follow-through or is about to fizzle, you’re not alone. Premium members can read our lesson:
📖 Confirming a Breakout: Is It the Real Deal?
Reading this helps you understand how to confirm a breakout before acting on it, how volume, ATR, and momentum indicators work as a second opinion on price action, and why a breakout that stalls near support, like gold’s pause at its pivot point, still needs confirmation before you trust it.
And if you’re not a Premium subscriber yet, now’s a good time to sign up.
With Babypips Premium, you get full access to School of Pipsology lessons that help you understand not just where gold broke out on the chart, but how to tell whether that breakout has enough conviction to follow through.
