XAU/USD Extends Rally After Reclaiming Key Structure Levels
Gold has surged past the $4,200 mark, reinforcing its dominant uptrend and signaling renewed strength in the precious metals market. The latest breakout follows a period of consolidation where price held firmly above major demand zones before accelerating upward. With risk sentiment shifting and technical structure aligning, traders are now watching whether gold can continue pressing toward the next major resistance.
Strong Structural Break and Expanding Momentum
Market shows gold establishing a clear bullish trajectory after breaking out of a multi-month range earlier in the year. Price action remained supported by a broad demand area between roughly $3,680 and $3,820, where buyers consistently defended pullbacks.
The rebound from this zone set the foundation for the current sustained rally.
After multiple Break of Structure (BOS) signals during the September–October uptrend, gold entered a shallow retracement phase but maintained its bullish character. Recent consolidation formed a base just beneath $4,150, creating a tight structure that hinted at accumulation rather than distribution.
The decisive breakout above $4,200 marks a significant shift, pushing price closer to the prominent weak high near $4,507, a level that may serve as a high-liquidity magnet.
This upper region represents a critical test of trend strength and could determine whether gold extends toward new record levels.
Volume spikes during recent upward candles further support the move, indicating genuine participation rather than a low-liquidity push. Momentum remains favorable as long as gold stays above the reclaimed breakout area, which now acts as immediate support.
Lower-timeframe structure also shows a sequence of CHoCH and BOS signals aligning with the broader bullish narrative. Meanwhile, the strong low at approximately $3,300 remains intact and continues to anchor the market’s long-term bullish bias.
Gold’s break above $4,200 underscores ongoing bullish dominance and places the metal on a direct trajectory toward the next key resistance at $4,507. As long as price holds above the breakout zone, the broader technical landscape favors continuation, with higher-timeframe liquidity levels providing clear upside targets. The coming sessions will reveal whether buyers have the strength to push further into untested territory.
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.