- December 23, 2025
- Posted by: EWGFX
- Category: Technical analysis
Market Structure:
Gold remains in a strong ascending channel, maintaining higher highs and higher lows. After briefly breaking above the mid-channel resistance, price respected the broader bullish structure, confirming trend continuation rather than reversal.
Price Action & Patterns:
The market experienced a healthy 40% corrective consolidation, followed by a strong impulsive leg that broke the local channel. This move was followed by a pennant formation, accompanied by a controlled 50% correction, indicating bullish compression rather than distribution.
Support & Demand Zone:
Price is currently pulling back into a key demand area, aligned with former resistance and the channel support. This zone is critical for continuation and provides a favorable risk-to-reward structure for trend-following setups.
Upside Scenarios:
If price holds above this demand zone, continuation toward the upper channel boundary becomes the primary scenario, with extended targets toward the 4,550–4,580 region based on channel projection.