Gold (XAU) is trading near $4,611 as bulls aim for a breakout from a descending channel, with a potential move toward $4,786 if resistance levels are surpassed. The price has been compressed below the 50-day moving average, a key resistance point, after reaching an all-time high of $5,598 on January 29. Recent attempts to break this level have been unsuccessful, with the next significant resistance at $4,842.
On the 4-hour chart, buying pressure weakened at the $4,586 support, leading to a minor recovery. Analysts suggest a bottom formation near $4,399 could trigger a rise toward the $4,700-$4,800 range. However, a rejection below $4,870 could maintain the bearish trend, with deeper supports at $4,266 and $4,094.
The 1-hour chart shows a descending channel since April 26, with gold testing the upper band at $4,614. A breakout could target $4,786, aligning with daily resistance. Conversely, a breakdown could see prices fall to $4,326, aligning with daily support levels.
Gold Bulls Target Breakout as Price Nears $4,786
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