On September 5th, the price reached a supply zone around 3550. This indicates that the price is losing its bullish momentum and approaching a resistance level. We can see that sellers became active in this zone and pushed the price down.
A strong demand zone has formed around 3500. Since the end of August, this level has acted as support for the price and has led to new price increases.
Break of Structure (BOS) and Change of Character (CHoCH)
Since August 26th, the price has consecutively created higher highs and higher lows. This indicates that the market is in a bullish trend. After the price crossed the 3500 level, this trend became even stronger.
On September 5th, we can see that the upward trend continues. Although the price experienced a slight pullback after reaching the 3550 level, there is no fundamental sign of a trend change yet.
Future Target
Based on the analysis, the most likely future target for the price is the 3600 level. This level is also important as a psychological resistance level, and the price is expected to move towards this point.
If the price falls below the 3500 level, this could be an indication that the trend is weakening. In such a situation, the price could be expected to pull back to the 3450-3400 zone. However, based on the current bullish structure in the chart, the main target is still in the upward direction.
Summary: This chart shows that gold (XAU/USD) is in a strong bullish trend. Despite the pullbacks, the main target is the 3600 level. For this trend to reverse, the 3500 level must be broken to the downside.