XAUUSD Bullish Pennant Breakout: Retesting Before Targeting 3000

XAUUSD is currently trading at 2934, with a target price of 3000, indicating a potential move of 66 points to the upside. This comes after the pair has already hit a 100% profit target following a bullish pennant breakout. The bullish pennant is a continuation pattern that typically forms after a strong price move, followed by a period of consolidation. After breaking the upper trendline of the pennant, prices often continue in the same direction, which in this case, is bullish. However, after the breakout, a small retesting phase is possible before the price resumes its upward momentum.

From a technical perspective, after reaching the 100% profit target, there is often a natural pullback or retest of the breakout point. This allows traders to re-enter the market with confirmation that the previous breakout was valid. The retesting phase is essential to ensure that support holds and provides a low-risk entry point for the next leg up toward the target of 3000.

Fundamentally, gold prices remain supported by a combination of factors, including ongoing inflation concerns, geopolitical risks, and central bank policies. With inflationary pressures still evident across major economies and global uncertainty around geopolitical events, gold remains a favored safe-haven asset. Additionally, the U.S. Federal Reserve's stance on interest rates will continue to play a significant role in shaping gold’s outlook, with lower rates typically supporting higher gold prices.

In summary, XAUUSD has successfully completed the bullish pennant breakout and reached the 100% profit target. A potential small retest before the next bullish move toward 3000 presents a solid re-entry opportunity. Monitoring global economic and geopolitical developments will be key to ensuring continued upward momentum for gold.