XAU/USD Eyes Breakout Amid Strong Technical Setup
Gold prices are climbing steadily toward a potential new record high, while Bitcoin struggles under selling pressure. As of Friday, spot gold (XAU/USD) is trading around $3,411 per ounce, holding near its recent peak. The yellow metal has gained momentum in recent sessions, supported by bullish technical signals.
BITX Analysts note that gold’s rally comes at a time when investors are seeking safe-haven assets amid market uncertainty. In contrast, Bitcoin, often seen as digital gold, is witnessing profit-taking after a volatile month.
The 4-hour XAU/USD chart reveals a strong uptrend, supported by a rising trendline from early August. The price recently broke above a key consolidation zone near $3,385, turning it into support. Now, all eyes are on the resistance zone at $3,430, marked by previous highs.
“Gold is showing strong bullish structure,” said BITX commodities strategist. “A breakout above $3,430 could pave the way for new record levels, especially if global risk sentiment remains fragile.”
Volume data also supports the bullish bias, with increasing buying activity during the recent rally. The market structure suggests higher lows and higher highs, signaling persistent demand.
While gold shines, Bitcoin remains under pressure, struggling to reclaim key resistance levels. Market experts suggest that tight liquidity and macroeconomic headwinds are weighing on crypto markets, pushing investors toward traditional hedges like gold.
If bulls manage to hold above $3,400 and break the $3,430 resistance, the next major target could be $3,470 and beyond, potentially signaling a historic move for the precious metal. However, failure to sustain above current levels may lead to a retest of the $3,380 support zone.
For now, gold remains in a strong technical position, with the market closely watching for confirmation of a breakout that could set the tone for the weeks ahead.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.