The price of gold continues to power higher, with the market showing a consistent pattern of trend moves to the upside followed by only modest pullbacks. This dynamic has kept buyers firmly in control. Earlier today, the metal attempted to correct lower after testing a topside trendline, but the selling pressure quickly faded. The shallow nature of that pullback underlined the strength of underlying demand.
From there, gold regained momentum and pushed back above the trendline, a move that not only erased any near-term bearish sentiment but also reinforced the bullish bias. With that break, traders have started to focus more intently on the $4,000 level, a major psychological milestone now sitting just $42 away.
In my video above, I discuss the key technical drivers fueling this rally—from the persistence of higher highs and higher lows to the inability of sellers to sustain downside momentum. I also outline the conditions that would be needed for sellers to regain some control and provide buyers with a reason for caution.
Until those signals emerge, however, the buyers remain firmly in the driver’s seat, and the prevailing trend suggests that gold still has room to continue its march toward new highs.
Gold is on fire. The sellers need to put the fire out but so far, is not having much success.
