Gold Eyes Bullish Expansion as Price Rebounds From Trendline Support

Market Analysis – July 18

Gold continues to trade within a firmly established bullish trend that began from the low recorded in November 2024. Since then, the price has maintained a steady upward trajectory, consistently respecting a long-term ascending trendline that has acted as dynamic support throughout the move.

GOLD Key Levels

Demand Levels: 3130.00, 2960.00, 2790.00
Supply Levels: 3354.00, 3530.00, 3720.00

GOLD Long-Term Trend: Bullish

During this sustained uptrend, gold has gradually advanced without violating the trendline resistance. This steady climb is supported by the daily Relative Strength Index (RSI), which has remained in overbought territory for prolonged periods—an indication of persistent bullish momentum.

After the latest bullish surge, the price approached the trendline resistance, triggering a bearish response. This resulted in a significant pullback in the daily RSI, bringing it below the overbought threshold and signaling a temporary reduction in buying pressure.

At present, gold is retesting the ascending trendline support, forming a crucial technical setup. While a bullish expansion appears to be forming, a decisive breakout above the nearby 3354.00 supply zone is necessary to confirm continued upside movement, a scenario closely watched by traders relying on forex signals.

GOLD Short-Term Trend: Bullish

On the 4-hour chart, the price action reveals an emerging inverse head and shoulders pattern near the trendline support. This classic reversal formation adds further credibility to the bullish bias and increases the likelihood of an upward breakout. Should the price break through the immediate resistance levels, it would reaffirm the potential for sustained bullish momentum.

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