Gold is on The Way to Hit $3500: Technical Analysis
Muhammad Faraz 
GOLD Price Technical Analysis
Gold (XAU/USD) is currently trading at 3,320.045, showing a slight decline of -6.390 (-0.19%) on the 4-hour chart. The price action has formed a clear order block (marked as “MSB” on the chart) which could serve as a springboard for the next major move toward our $3500 target.
Key Support and Resistance Levels
Critical Support Zones:
- Primary Support: 3,280.000 (recent swing low and psychological level)
- Secondary Support: 3,240.000 – 3,200.000 (major demand zone)
- Tertiary Support: 3,180.140 (current session low)
Key Resistance Levels:
- Immediate Resistance: 3,328.320 (today’s high)
- Next Resistance: 3,360.000 (psychological level)
- Major Target: 3,500.000 (measured move target from order block)
- All-Time High Projection: 3,520.000+
Technical Analysis Breakdown
1. Order Block Activation (MSB)
The chart shows a clear order block labeled “MSB” with parameters (9, 0.33, tiny). This represents:
- A 9-period formation
- 0.33% price rejection
- Tiny transaction volume
Trading Strategy: A confirmed breakout above 3,328.320 with volume expansion would validate the bullish scenario toward 3,500.
2. Volume Analysis
- Current volume: 29.41K (tick volume) / 54.58K (real volume)
- The relatively low volume during the pullback suggests weak selling pressure
- We need to see volume expansion on the breakout for confirmation
3. Market Structure
- Higher highs and higher lows remain intact
- The current pullback appears corrective within an uptrend
- The 3,280 support has held multiple tests, showing strong buyer interest
Projected Price Path to $3500
- Initial Breakout: Clear 3,328.320 resistance
- Consolidation Phase: Potential pause around 3,360
- Acceleration: Strong move toward 3,440-3,480 zone
- Final Push: Momentum buildup to test 3,500-3,520
Risk Management Considerations
- Invalidation Level: Daily close below 3,240 would negate the bullish scenario
- Position Sizing: Recommend 1-2% risk per trade given volatility
- Profit Protection: Consider partial profits at 3,440 and 3,480
Fundamental Catalysts
While this is primarily a technical analysis, traders should monitor:
- USD strength/weakness (DXY index)
- Federal Reserve monetary policy signals
- Geopolitical tensions (gold’s safe-haven status)
Conclusion
Gold is positioning for a potential breakout toward $3500 following the order block formation. The technical structure remains bullish above 3,280 support, with the next key resistance at 3,328. Traders should wait for confirmation with volume expansion before entering long positions, with proper risk management in place for this high-probability trade setup.
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