Gold Price Outlook: XAU/USD Eyes $4,950 Target After Pullback to Demand Zone
Gold (XAU/USD) continues to trade within a well-defined bullish structure following a healthy correction from recent highs. Rather than signaling trend exhaustion, the pullback appears constructive, bringing price into a high-probability demand zone aligned with a previous break of structure. This behavior suggests the broader uptrend remains intact.
Key Technical Structure
Market Structure and Demand Zone
After a strong impulsive rally, gold has entered a controlled retracement phase. Importantly, price is holding above critical structural levels, indicating that sellers have so far failed to disrupt the prevailing bullish trend.
The highlighted demand zone coincides with former resistance that has now flipped into support. This area represents a technically significant level where buyers previously stepped in, increasing the probability of another bullish reaction if confirmation appears.
Trend Validation and Risk Framework
From a tactical perspective, the preferred buy area sits near this demand zone, allowing for clearly defined risk. The invalidation level is positioned below recent structural lows, meaning the bullish outlook remains valid as long as price does not break below this support.
This setup reflects a continuation-based approach rather than a reversal attempt, emphasizing alignment with the dominant trend rather than counter-trend speculation.
Why This Matters for Gold Traders
The current price action reinforces the idea that bulls remain in control, even as short-term volatility and emotional swings may occur during consolidation phases. The inability of sellers to break structure during the pullback strengthens the case for renewed upside once demand is confirmed.
This type of correction often serves to reset momentum, allowing stronger continuation moves to develop once buying pressure resumes.
Upside Targets and Price Outlook
On the upside, key resistance targets remain focused at:
- $4,800
- $4,850
- $4,950
These levels align with projected extensions following a successful defense of the demand zone. A continuation higher would signal renewed bullish momentum and confirm that the broader trend remains dominant.
As long as the correction does not invalidate the existing market structure, further upside expansion remains the primary scenario for XAU/USD.
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