Gold Breaks Above $4,000 as Dollar Weakens
The price of gold (XAU/USD) moved decisively above the $4,000 threshold today, driven by a combination of factors:
→ A softer US dollar index, following a pullback from resistance levels highlighted in yesterday’s DXY analysis.
→ Lingering concerns over the US government shutdown, with reports indicating that major airlines have begined limiting ticket sales in November as operations face disruption.
Technical View on XAU/USD
In our 28 October analysis of gold price action, we noted that:
→ An ascending channel (shown in blue) had formed, reflecting gold’s impressive rally from the August low.
→ A potential retracement target could be the QL line, reinforced by strong support around the $3,900 level.
That support area successfully contained further downside, creating a local bottom at point B. The market then entered a phase of sideways consolidation, forming a symmetrical triangle pattern.
Today’s upward breakout from this triangle (outlined in black) marks a significant shift in momentum, signalling that purchaviewrs may be regaining control and positioning for a continuation of the broader 2025 uptrend.
Should bullish momentum persist, traders will be watching for reactions around:
→ $4,045, a key resistance level;
→ $4,150, coinciding with the 50% retracement of the A–B decline, which has previously acted as a turning point for XAU/USD.
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