Gold Consolidates as Market Anticipates Further Bullish Continuation

Market Analysis – July 26

After a significant bullish break of structure, Gold initiated a strong upward trend as buyers firmly took control of the price action. This bullish momentum continued until mid-April 2025, when the price reached the $3400.000 supply level, where it encountered strong resistance that temporarily paused the advance.

GOLD Key Levels

Demand Levels: 2950.00, 2780.00, 2600.00
Supply Levels: 3140.00, 3400.00, 3600.00

GOLD Long-Term Trend: Bullish

In the course of its upward movement, price successfully broke above the $3140.00 supply zone — a significant level that confirmed the strength of the prevailing bullish trend. At that stage, the daily Relative Strength Index (RSI) entered overbought territory, which typically signals a potential bearish reversal.

However, instead of declining, price entered a consolidation phase, forming an ascending triangle pattern — a classic indicator of bullish continuation. Interestingly, during this consolidation, the RSI began moving downward toward the oversold region, which increased the probability of a bullish breakout. Traders seeking forex signals may find this development particularly relevant.

GOLD Short-Term Trend: Ranging

Currently, price action on the lower timeframe indicates a consolidation phase, confined between the $3400.000 resistance level and ascending support. This setup is consistent with the ascending triangle pattern observed on the higher timeframe. A breakout from this consolidation will offer a clearer directional bias — and given the overall trend and technical formation, a bullish breakout appears to be the more likely outcome.

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