Gold (XAU/USD) is currently trading inside a strong upward channel, reaching the $3,720–$3,820 area. Technically, this zone is marked as an exhaustion area, meaning price may face heavy resistance and possible reversal signals.

Technical Outlook

• The chart shows gold has been respecting the rising channel.

• Above $3,720, sellers may become active, making it harder for price to push higher.

• Nearest strong support lies at $3,740. If price holds this level, buyers may attempt another rally.

• Major resistance is now at $3,800 and $3,820. A breakout above $3,820 could extend the bullish move further.

• If gold fails to hold above $3,740–$3,720, a deeper correction toward $3,650–$3,620 may follow.

• Traders should also watch for a false breakout at the channel top.

Fundamental Factors

• Central bank policies remain key. Expectations of U.S. Federal Reserve rate cuts in 2026 may continue to support gold.

• Rising geopolitical risks and concerns about global growth also fuel safe-haven demand.

• However, stronger-than-expected U.S. economic data could lift the dollar, pressuring gold.

Conclusion

Gold is at a critical decision zone. Strong support sits at $3,740, while major resistance is at $3,800–$3,820. A breakout above $3,820 opens room for further gains, but if sellers defend this zone, gold could pull back sharply toward $3,650–$3,620.