Gold prices have resumed their upward momentum, with XAU/USD currently hovering around $3,390 per ounce. After briefly surpassing the previous weekly peak, gold remains in a consolidation phase, showing only modest gains without a definitive breakout. Nonetheless, the technical outlook suggests that bulls are maintaining control in the near term, supported by a mildly bullish 20-day Simple Moving Average acting as a dynamic support at $3,350. The 100 and 200-day moving averages are trending upward, reinforcing the positive sentiment and hinting at further extensions if conditions remain favorable.

Short-term technical indicators are signaling a gradual shift toward the upside, even as momentum proves somewhat subdued. Notably, buyers have consistently defended pullbacks around the 20-day SMA, which now serves as a crucial support at $3,374.50. While the longer-term moving averages are flat and provide no strong directional cues, the current price action suggests buyers are prepared to challenge immediate resistance.

For gold to break out further, the XAU/USD pair would need to surpass key resistance at $3,407 and establish a firm close above this level. If this happens, it could pave the way for additional gains heading into the weekly close. On the downside, essential support levels to monitor include $3,374.50 and $3,350. Should sellers push prices below these thresholds, further corrections may occur.

Market sentiment remains tentatively bullish, with traders keeping a close eye on upcoming economic data and Federal Reserve policy signals that could influence gold’s trajectory. Until a decisive move occurs, expect consolidated trading within the $3,350 to $3,407 range, but be prepared for increased volatility if resistance is challenged or support is breached.