Gold Setup: Trendline Breakout + Fundamental Tailwinds

Gold ( OANDA:XAUUSD ) gave us a textbook early entry on Friday after testing the 21-day moving average and surging on strong volume. The breakout of a short-term trendline confirms a bullish technical shift, supported by rising relative strength over the past two weeks. Historically, 4%+ weekly gains in a major index often mark a bottom, and this week’s 4.8% surge adds conviction to the setup.

On the macro front, gold remains a prime hedge in a volatile environment:

Sticky inflation pressures persist globally.

Geopolitical tensions remain elevated (Ukraine, Middle East, Taiwan).

Central banks continue adding to gold reserves, reflecting a shift away from fiat exposure.

Debt and deficit concerns in the U.S. are fueling safe-haven demand.

Gold’s role as a store of value is as relevant as ever in this uncertain backdrop.

Trade Setup:
📈 Entry: 3,335 – 3,368
🛑 Stop: 3,190 – 3,233
🎯 First Target: 3,500 — we’ll look to take profits on a reversal or add to the position on a break above all-time highs.

Let’s see how the follow-through develops next week.


http://dlvr.it/TKyqy5