Gold Builds Momentum for Potential Rally

Gold has rebounded strongly from the key support level of $2,470, which we previously identified as a significant weekly support. This level has effectively held during recent price fluctuations between $2,470 and $2,530, and the current bounce reinforces its strength. The daily line chart below shows that the gold market has broken out of a rising channel, indicating a potential shift towards higher prices. The main question now is whether gold will make a minor correction down to $2,440 or if it has already initiated a stronger rally targeting $2,700 as the initial resistance.

The primary target for this breakout, which started from $2,075, remains at $3,000, suggesting that gold is on track to reach this level soon. The ascending broadening wedge pattern highlights strong volatility, and recent consolidations suggest that gold is building pressure for a potential breakout higher.

Investors might consider buying during this correction, with $2,700 as the initial resistance and $3,000 as the primary target. The $2,470 level continues to act as a crucial support, underpinning the bullish outlook for gold.

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