XAU/USD outlook: Gold hits new five-week high on break above pivotal barriers at $3,400 zone

XAU/USD

Gold surged above $3400 barrier on Tuesday after a brief pause (shallow pullback from $3402 to $3383) and cracked next target at $3420 (triangle’s upper boundary).

Steep ascend extends into second consecutive day, with daily close above $3400 zone (psychological / Fibo 76.4% of $3452/$3246) to generate fresh bullish signal, which will be validated on sustained break above $3420 that would unmask $3452 (June 16 top).

Meanwhile, corrective dips should be anticipated on strongly overbought hourly studies and expected to provide better levels to re-enter bullish market.

Broken barrier at $3400 reverted to solid support which should ideally contain, with extended dips to find ground above today’s low ($3383) to keep larger bulls intact.

Res: 3420; 3437; 3452; 3500.
Sup: 3400; 3383; 3350; 3330.

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