Gold eased lower on Thursday, slipping to a three-day low of $3,298 (USD), as it retested key support around the breakout point of a bullish flag formation. This comes after Monday’s decisive breakout, which was confirmed with a strong daily close above the flag’s upper boundary. Momentum strengthened on Tuesday, with gold closing above a key swing high at $3,371—reinforcing the bullish case.
That breakout also triggered a move above last week’s high of $3,353, signalling a weekly breakout. For this to hold, gold needs to close out the week above $3,353. This requires support to step in before the end of trading on Friday—but at present, sellers are keeping the pressure on.
Sellers Press Gold Lower as Support Gets Tested
As of writing, gold remains close to session lows near $3,298, with further downside possible. The price is now testing multiple support levels, including the 20-day moving average (currently at $3,307) and the top of a longer-term rising trend channel. A critical support zone lies slightly lower, around $3,275 to $3,269—an area shaped by past highs, lows, and intersecting trendlines.
A close below $3,275 would mark a break beneath the short-term uptrend line and suggest a weakening trend. The 20-day moving average—often a key indicator of short-term momentum—is also under pressure.
A Swift Recovery Could Restore Bullish Momentum
If gold can quickly reclaim the 20-day moving average, it could confirm this pullback as just a temporary retracement within the broader bullish trend. On the other hand, a drop and close below $3,275 would increase the likelihood of a breakdown from the bull flag structure. However, a new bullish wedge may be forming instead—offering an alternative path forward for gold bulls.
Gold Trend Still Positive – Path to $3,500 Remains Open
For Australian gold investors, this dip appears to be a natural pause in a longer-term uptrend. Bull flag patterns often lead to continuation rallies, and if this setup holds, gold may still be on track for new all-time highs above $3,500 (USD). While short-term volatility may shake out weaker hands, the technical picture continues to favour further upside for those focused on the bigger picture.
