Gold Price Forecast: XAU/USD Holds Ascending Wedge Support as Gold Outperforms Palladium

Gold (XAU/USD) has extended its gains after finding support near the lower trendline of the ascending wedge. The overall structure remains positive following the major cup-and-handle breakout and the strong rally that followed. At the same time, the gold-to-palladium ratio continues to favor gold after breaking a major descending channel resistance. These developments support a positive outlook for gold and highlight its continued strength relative to palladium.

Gold Technical Analysis: XAU/USD Rebounds from Key Wedge Support

The gold chart below shows a large cup-and-handle formation that developed over several years. The cup formed through a prolonged decline from the 2011 high followed by a gradual recovery toward resistance. Price then formed a smaller rounded handle below the same resistance zone. Gold completed the pattern by breaking above the $2,000–$2,100 area. The breakout changed the overall price structure and opened the way for further gains.

Gold then entered a strong advance that carried price into a steep ascending wedge. Price climbed toward wedge resistance before reversing sharply. The decline then reached the lower wedge support, where gold found support and turned higher. This reaction keeps the ascending wedge intact and confirms its importance to the overall price structure.

Gold has since moved higher from the lower wedge support and is trading around $4,390. The recovery keeps price within the ascending wedge and maintains the positive structure. Further gains remain possible while gold stays above the lower wedge line. However, a break below this support would weaken the pattern and increase the risk of a deeper decline.

Gold-to-Palladium Ratio Enters Bullish Wedge after Breaking Long-Term Channel

The chart below shows the gold-to-palladium ratio trading within a large descending channel that remained in place for many years. The ratio reacted to both sides of the channel as it moved lower before forming a major base near channel support. Several rounded formations also appeared during this period. The ratio eventually turned higher from the base and entered a strong advance.

The ratio later broke above the descending channel resistance and moved into an ascending broadening wedge. This breakout marked an important shift in the relationship between gold and palladium. The ratio gained momentum after clearing the former channel and climbed toward wedge resistance before turning lower. Despite the decline, it remains well above the former channel resistance. This keeps the breakout intact and shows that gold continues to outperform palladium.

The ratio is now trading around 3.35 and remains within the ascending broadening wedge. It has turned higher after declining from wedge resistance and is showing renewed strength. Further gains could carry the ratio toward higher levels within the wedge and signal additional gold outperformance against palladium. However, a decline toward the lower wedge trendline could weaken the current outlook.

Gold Price Outlook: Ascending Wedge Holds as Gold Continues to Outperform Palladium

Gold continues to maintain a positive price structure within its ascending wedge. The major cup-and-handle breakout remains intact after triggering a strong advance. The decline from the high has not altered the overall price structure. Gold continues to trade within the ascending wedge, keeping the outlook positive.

At the same time, the gold-to-palladium ratio remains above the former descending channel resistance after completing a major breakout. The ratio is also trading within an ascending broadening wedge. Despite declining from wedge resistance, the overall structure remains positive and shows continued gold outperformance against palladium. Staying above the former channel resistance keeps this shift in relative strength intact.

These developments continue to favor further strength in gold. The ascending wedge remains intact, while the gold-to-palladium ratio continues to support gold’s relative strength. A further advance in gold and continued strength in the ratio would strengthen the positive outlook and highlight continued gold outperformance relative to palladium.