Gold: Stretched, Channel Broken, First Real Pullback Next?1️⃣ Overview
Yesterday, Gold reached a new all-time high at 4061, marking the 8th consecutive ATH in 8 days. If we also consider that the yellow metal has been rising for 8 consecutive weeks, the bullish momentum is undeniable.
However, no market can rise indefinitely without pauses. Regardless of how strong the uptrend is, corrections are necessary, and I believe we are very close to one — if not already in it.
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2️⃣ Technical Context
After Friday’s low at 3820, Gold traded within an ascending channel, climbing around 2500 pips from bottom to top. This represents roughly a 6% increase, which is quite significant — especially coming after about a 15% rise in the previous 7 weeks.
Now, the channel has been broken, and Gold has entered a small correction toward the 4000 zone. At the time of writing, the market is rebounding, suggesting that bulls have not yet given up.
Still, this rebound looks more like the first sign of exhaustion than renewed strength. Even if bulls manage to push for another all-time high, the market structure is weakening.
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3️⃣ Key Zones to Watch
The 4000 level is now the main psychological area and the line in the sand, followed by the 3990 zone, which acts as technical support.
A sustained break below these areas could open the way for a sharper correction toward the 3900 region, which would still only scratch the surface of the broader rally.
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4️⃣ Market View
Of course, the bullish trend will remain intact on the medium term, but momentum is stretched, and a cooling phase looks increasingly likely.
I’m currently watching for potential selling points around yesterday’s highs, as the market starts to show its first signs of fatigue after an exceptional run.
