Gold Bounces Off Trendline as Bulls Defend Structure Ahead of $3

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Gold (XAU/USD) has rebounded sharply from its rising trendline support and 50-day SMA (around $3,221), suggesting that the broader bullish trend remains intact despite recent consolidation below the $3,430 resistance.

The uptrend from the December 2024 lows continues to hold, anchored by a sequence of higher lows and a clear ascending trendline. The recent dip toward the trendline was met with firm buying, resulting in a strong bullish candle on the daily chart. Price action now sets up a potential retest of the $3,430 horizontal resistance — a key level that has capped multiple rallies over the past few months.

Momentum indicators paint a mixed but improving picture. The RSI has bounced from just below 40 to 46.64, avoiding oversold territory and hinting at a potential momentum recovery. Meanwhile, the MACD remains in negative territory but is beginning to flatten, signaling a possible shift in short-term momentum.

A confirmed breakout above $3,430 would mark a resumption of the broader bullish leg and expose gold to new highs. However, a breakdown below trendline support would invalidate the current structure and shift focus toward the 200-day SMA near $2,924.

For now, the trendline bounce gives bulls the upper hand, keeping the upside scenario in play.

-MW

Feragatname

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