Weekly Market Review – Gold (XAUUSD) 13 July - 17 July

For the past three weeks, gold has continued to trade within the wedge pattern formed by Trendline 1 and Trendline 2 (purple lines). This prolonged consolidation indicates a strong battle between buyers and sellers as the market awaits its next major directional move.

At the moment, the probability of either scenario remains approximately 50:50:

Bullish Scenario: A confirmed breakout above the resistance zone at USD 4,147 – USD 4,190 could strengthen bullish momentum and pave the way for a retest of the next resistance around USD 4,349.

Bearish Scenario: A breakdown below Trendline 2 could expose the next major support zone at USD 3,880 – USD 3,816.

The current wedge has become increasingly tight, indicating that buying and selling pressure is approaching equilibrium. Such price compression is often followed by a significant breakout, although the direction should only be confirmed after a decisive close beyond the key support or resistance levels.

Congratulations to those who accumulated gold near last Tuesday's (30 June) low. That entry provided an excellent risk-to-reward opportunity. For those who missed the move, patience may be rewarded if price revisits the USD 3,880 – USD 3,816 support zone.

From a market structure perspective, gold has also begun forming a series of Higher Lows (HL) and Lower Highs (LH). While this reflects ongoing price compression within the wedge, a confirmed breakout above the USD 4,147 – USD 4,190 resistance zone, followed by a break above USD 4,349, would provide stronger confirmation that the market is transitioning into a bullish trend.

⚠️ Disclaimer: This analysis is for educational and informational purposes only and should not be considered financial advice. Always conduct your own analysis and manage your risk appropriately.

GS Gold Insights

"From Market Insights to Gold Ownership."