Gold Reclaims Bullish Zone—Perfect Time for a Swing Entry

Gold has once again reclaimed bullish momentum after breaking through the key support zone around $3,412, previously a stubborn ceiling that had acted as resistance multiple times throughout late May and early June. The break above this level—validated by a decisive green Supertrend flip—indicates a short-term trend reversal in favor of buyers.

After a brief consolidation phase, XAUUSD formed a solid breakout candle, confirming upward momentum. The current price action sits comfortably above the Supertrend line, which is now acting as dynamic support, while volume has picked up notably during the move up—an important confirmation of institutional interest and breakout strength.

Trade Setup Breakdown
• Entry: Above the $3,412 breakout area (now acting as support)
• Stop Loss: Below the key support zone, ideally near $3,373–$3,375 to allow for wick re-tests and avoid premature exits
• Target/TP: Resistance zone marked near $3,484–$3,500, which aligns with a prior consolidation ceiling from late April and early May. This target offers a risk-reward ratio of approx. 2.3:1, which is favorable for a swing position.
• Re-entry Opportunity: If gold retraces back to the $3,373–$3,383 zone (support cluster), it would provide a high-probability re-entry while keeping the same TP of $3,500.
Why the Bias Is Bullish
1. Structure Break & Supertrend Flip
The key breakout above previous resistance was clean and confirmed by the Supertrend flip to green, a historically reliable short-term bullish signal.
2. Volume Confirmation
Volume spikes on the breakout candles confirm real buying pressure—not just a false breakout or low-liquidity movement.
3. Support Retest Potential
The $3,412–$3,383 zone now forms a strong demand area where buyers are likely to defend their positions if price pulls back. This zone also aligns with historical congestion from earlier price action.
4. Macro Context (Not in chart but relevant)
Ongoing economic uncertainty, rising global tensions, and interest rate speculation continue to boost gold's safe-haven appeal. Traders are increasingly rotating into gold during periods of macro volatility.
Outlook
Gold is likely to continue climbing toward the $3,500 mark unless it closes below $3,373 on high volume. Bulls appear to be in control, and even a minor pullback could serve as a buying opportunity. As long as the price remains above the flipped Supertrend and $3,373 support, the bullish case remains intact.