HARIANEXPRESS – Global gold prices are anticipated to continue their upward momentum in the short term, with Dupoin Futures noting a sustained strengthening trend for XAU/USD on Thursday, August 6, 2026. This positive outlook is underpinned by several technical indicators, suggesting that gold has successfully moved past a consolidation phase.
Geraldo Kofit, an analyst at Dupoin Futures, highlighted that the daily gold chart has broken through a sideways movement pattern and emerged from a Bullish Pennant formation. This technical pattern is often seen as an indication of trend continuation after a period of market consolidation. The breakout signals increased buying pressure, which could propel gold towards higher price levels.
Technical Patterns Bolster Upside Prospects
In addition to the Bullish Pennant, gold’s price movement has also formed a Double Bottom pattern. This formation typically suggests a decrease in selling pressure and a resurgence of buying interest controlling market direction.
The combination of these two technical patterns reinforces the projection that gold’s upward trend may persist over the coming trading sessions. However, the continuation of this strengthening depends on the price’s ability to maintain its buying momentum.
Dupoin Futures projects the immediate upside target for gold to be around USD4,354 per troy ounce. This level is identified as a key resistance area that gold needs to breach before advancing towards its next target.
If gold successfully breaks past USD4,354 with robust trading volume, it could potentially extend its gains towards the USD4,483 per troy ounce area. Nevertheless, market participants should be prepared for profit-taking, which could heighten volatility as prices approach these resistance zones.
Fundamental Sentiments Remain Diverse
From a fundamental perspective, gold’s movement is influenced by a mix of factors exerting varying pressures. Developments in diplomacy between the United States and Iran, for instance, could diminish demand for gold as a safe-haven asset if negotiations progress positively.
Conversely, a weakening US Dollar acts as a supportive factor for gold prices. A weaker dollar makes gold relatively more affordable for investors using other currencies, potentially boosting demand.
The market is also closely monitoring the Federal Reserve’s monetary policy trajectory. Signals indicating a more accommodative policy, such as an increased likelihood of interest rate cuts, could serve as an additional catalyst for gold’s strengthening.
However, the potential for upside gains might be limited if US economic data continues to demonstrate strong resilience. Such conditions could reduce the likelihood of the Federal Reserve lowering interest rates in the near future. Therefore, investors are expected to closely watch various US economic indicators for clues regarding the central bank’s next policy decisions.
Bullish Outlook Persists
Overall, the outlook for gold prices remains positive. The successful exit from a consolidation phase, confirmed Bullish Pennant, and the formation of a Double Bottom collectively serve as technical indicators supporting the likelihood of further gains.
While the strengthening trend is still open, investors and market participants should remain attentive to geopolitical developments, US Dollar fluctuations, and the Federal Reserve’s policy direction. These three factors are expected to be key determinants of gold’s movement in the short to medium term.
It is important to note that these technical projections do not guarantee that prices will move according to targets. Investment decisions should always consider risk profiles, market volatility, and global economic developments comprehensively.
