4 min readGold continues to respect its high time frame uptrend, and the recent pullback appears to be testing the lower boundary of a well-defined bullish channel on the daily chart. After a short period of local downside pressure, visualised by the red lines, price has found its way back into bullish structure.
If gold finds support here, it would suggest that the high time frame trend remains intact and we could soon see continuation to the upside. Price is holding above previous swing lows, and structure remains bullish as long as this channel support continues to hold. The market has paused, but the underlying momentum still points to strength.
Zooming into the 4-hour chart, the picture becomes more constructive. Gold is currently forming a double bottom pattern, with the neckline of that structure marked as number 2, sitting around the 3,348 level. This level is also acting as resistance and aligns closely with the 4-hour 20 and 50 exponential moving averages.
A clean reclaim of the 3,348 level would not only confirm the double bottom breakout but also bring price back above both EMAs, a clear sign of strength across time frames. From there, the next target would be the level marked as number 3, around 3,385, acting as the first trouble area.
Failure to reclaim resistance at number 2 could indicate short-term weakness. In that case, a break below the red descending trendline would increase the probability of deeper retracement, possibly challenging lower structure levels.
For now, gold is moving in a constructive manner, and a reclaim of the number 2 resistance zone would align all major time frames bullishly, potentially setting up the next leg in the broader uptrend.
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