The chart shows a strong medium-term uptrend in gold that began in late 2024, carrying the price steadily higher through the first half of 2025. After peaking, price has been consolidating in a clear range bounded by a well-defined resistance and support zone.
The Resistance Zone is marked around $3,438, where price has been repeatedly rejected. Each time the market approached this level, sellers stepped in, causing retracements. This reinforces the area as a significant supply zone.
Below, the Support Region near $3,249–$3,250 has provided a floor for price action. It’s notable that this area was once a resistance, making it a classic breakout-retest structure. Buyers have stepped in multiple times to defend this level, indicating healthy demand that aligns with the broader bullish trend.
The recent candles suggest the market is trying to build momentum for another test of the resistance. Wick rejections near support indicate that buyers are showing interest again. At the same time, the overall structure remains constructive, with higher highs and higher lows visible on the longer timeframe.
The Price-Volume Trend (PVT) indicator along the bottom is gradually climbing, which suggests accumulation is still happening beneath the surface. This can be a signal that a fresh breakout attempt is brewing.
Trade Setup
Here’s how the trade idea is structured visually on your chart:
• Entry Zone: Around $3,348, near the midrange and just above support.
• Stop-Loss: ~99 points below the support area (around $3,249), offering a cushion against volatility.
• Target: Approximately $3,555–$3,560, the next major resistance above the current consolidation.
• Reward Potential: ~207 points (6.19%) upside.
• Risk-Reward Ratio: ~2.09, which is a favorable setup for a trend continuation trade.
Analysis Summary
This is effectively a range-bound bullish continuation setup. The idea is to enter on support retest and ride the next impulse leg higher. Price is consolidating above the former breakout area, with clear evidence of accumulation on the PVT. If gold can close convincingly above $3,438, it will likely trigger breakout buying interest and stop-loss clusters from short sellers, which could drive price rapidly toward your target.
However, keep in mind that failure to hold above $3,249 support would invalidate the setup and could lead to a deeper correction or range breakdown. For this reason, your stop-loss level is well-placed to limit risk.
The Resistance Zone is marked around $3,438, where price has been repeatedly rejected. Each time the market approached this level, sellers stepped in, causing retracements. This reinforces the area as a significant supply zone.
Below, the Support Region near $3,249–$3,250 has provided a floor for price action. It’s notable that this area was once a resistance, making it a classic breakout-retest structure. Buyers have stepped in multiple times to defend this level, indicating healthy demand that aligns with the broader bullish trend.
The recent candles suggest the market is trying to build momentum for another test of the resistance. Wick rejections near support indicate that buyers are showing interest again. At the same time, the overall structure remains constructive, with higher highs and higher lows visible on the longer timeframe.
The Price-Volume Trend (PVT) indicator along the bottom is gradually climbing, which suggests accumulation is still happening beneath the surface. This can be a signal that a fresh breakout attempt is brewing.
Trade Setup
Here’s how the trade idea is structured visually on your chart:
• Entry Zone: Around $3,348, near the midrange and just above support.
• Stop-Loss: ~99 points below the support area (around $3,249), offering a cushion against volatility.
• Target: Approximately $3,555–$3,560, the next major resistance above the current consolidation.
• Reward Potential: ~207 points (6.19%) upside.
• Risk-Reward Ratio: ~2.09, which is a favorable setup for a trend continuation trade.
Analysis Summary
This is effectively a range-bound bullish continuation setup. The idea is to enter on support retest and ride the next impulse leg higher. Price is consolidating above the former breakout area, with clear evidence of accumulation on the PVT. If gold can close convincingly above $3,438, it will likely trigger breakout buying interest and stop-loss clusters from short sellers, which could drive price rapidly toward your target.
However, keep in mind that failure to hold above $3,249 support would invalidate the setup and could lead to a deeper correction or range breakdown. For this reason, your stop-loss level is well-placed to limit risk.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Trade forex, indices, stocks and metals with up to US$100.000 in company's funding.
Complete a challenge to access funding or go for instant deposit.
Trading involves substantial risk. Not financial advice
Complete a challenge to access funding or go for instant deposit.
Trading involves substantial risk. Not financial advice
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.