Lingrid | GOLD Weekly Outlook: Dip-Buying Dominance Continues

Oct 12

The price perfectly fulfilled my previous weekly idea. XAUUSD market delivered another impressive performance this week, decisively pushing through the psychologically significant $4,000 threshold. While this round number naturally attracts considerable market attention, seasoned traders recognize it as simply another milestone in gold's broader trajectory rather than a definitive ceiling.

What's particularly noteworthy is the dramatic increase in market volatility. Recent weeks have demonstrated a pattern where pullbacks averaging around 2% are consistently followed by rallies exceeding 4.5%. This asymmetric price action—where advances substantially outpace corrections—reveals strong underlying bullish momentum and aggressive buying on dips. The market may easily absorb a 2.8% pullback before staging another robust recovery, reinforcing this established rhythm.

Price action shows gold trading within a well-defined upward channel, with price respecting both the lower trendline support near $3,950 and approaching the upper resistance zone around $4,100. The all-time high formation near $4,060 marked a crucial peak, and current consolidation below this level suggests the market is building energy for the next directional move.

Key support remains anchored around $3,950, while the upward channel structure indicates potential targets extending into the $4,100-$4,200 range. The combination of persistent bullish momentum, widening volatility swings, and successful defense of higher lows points to a market that's far from exhausted. We should watch for either a breakout above $4,060 toward the target area or a retest of channel support before the next advance materializes.

If this idea resonates with you or you have your own opinion, traders, hit the comments. I’m excited to read your thoughts!

Oct 13

Trade active

XAUUSD is consolidated above the 4,000 pivot after a shallow pullback, keeping contact with the resistance zone that tops near 4,150. Price action is riding an upward channel with higher lows along the trendline and repeated range breakouts. If 4,010 and trendline support holds, bulls can press toward 4,150–4,180 next. Momentum remains constructive, with the series of higher highs and the recent fresh ATH supporting a trend-continuation backdrop.

⚠️ Risks:
- A daily close back below trendline would weaken the setup.
- Hot U.S. data or hawkish Fed rhetoric could firm the dollar and cap upside.
- A sharp rise in real yields may trigger profit-taking from highs