Gold (XAUUSD) Maintains Bullish Momentum With Breakout Potential Above Resistance

Market Analysis – May 22

Gold (XAUUSD) continues to exhibit strong bullish momentum with the potential to break above the $3,300 resistance level. Technical indicators on the daily chart support a bullish outlook. The 9-day Simple Moving Average (SMA) is trending upward and acting as dynamic support. The price is currently trading around $3,310, above the SMA positioned near $3,250. The Relative Strength Index (RSI) is hovering around 55, indicating moderate bullish strength without entering overbought territory. This suggests room for further upward movement without immediate risk of a correction.

Gold Key Levels

Resistance Levels: $3,300, $3,500, $3,600
Support Levels: $3,200, $3,100, $2,790

Gold Long-Term Trend: Bullish

Gold (XAUUSD) has consistently respected an ascending trendline that aligns with the most recent higher low near the $3,200 level. Price action recently entered a marked liquidity void zone and rebounded sharply, signaling potential institutional accumulation. The former resistance around $3,200 has now become a support level, confirmed by the presence of a bullish engulfing candle near that zone. Continued consolidation above $3,300 and the rebound from the demand area highlight sustained buyer interest.

Given the current trajectory, XAUUSD is likely to retest the $3,500 resistance in the near future. A breakout above this key psychological level could pave the way toward the $3,600 target, as indicated by the upward projection. However, failure to hold above the $3,300 level could result in a retest of the ascending trendline, offering another potential entry point for long positions. The overall market structure remains bullish, provided price continues to form higher lows and remains above the $3,200 support level. Traders may also consider forex signals to enhance entry timing and risk management strategies.

Gold Short-Term Trend: Bullish

Gold (XAUUSD) maintains a bullish fractal structure on the 4-hour chart, characterized by a sequence of higher highs and higher lows above the $3,200 support zone. The recent breakout above the $3,300 resistance level is supported by the 9-period SMA, which is currently providing dynamic support around $3,270.

The RSI is now reading near 66, indicating strong bullish momentum with additional room for upward movement. A brief retracement toward the $3,270–$3,250 range may occur before a continuation of the bullish trend toward the $3,400 level.

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