⬤ Gold is knocking on the door of a significant technical breakout after carving out a 2.5-month wedge formation. The metal needs to clear and hold above $4,670 on a daily close to confirm the move. Analyst Rashad Hajiyev points out that this level is make-or-break for any sustained rally.
⬤ The wedge has been building for 11 days, and the pattern's geometry tells an interesting story. Measuring from the base suggests a $500 jump waiting to happen once gold breaks free. "The base of the wedge implies a sharp upward push of around $500," according to the technical setup, which would land gold squarely at $5,100 before January wraps up.
⬤ What's driving this potential move? It's a mix of technical momentum and shifting investor sentiment. Gold's traditional role as a safe haven becomes more attractive when uncertainty creeps into markets, and that psychological factor could amplify the rally once the breakout gains traction. Fresh buying pressure following confirmation could accelerate the climb toward that $5,100 mark.
⬤ If this breakout plays out as expected, it could mark a pivotal moment for gold markets. Clearing $4,670 with conviction would validate the pattern and likely keep gold climbing, reinforcing its status as the go-to defensive asset. The $5,100 target represents a meaningful near-term rally that could draw even more attention to gold's safe-haven appeal.
