In the recent tides of the commodities market, gold has showcased a remarkable performance that has caught the eyes of investors and market analysts alike. Prices of gold futures have been experiencing a significant surge, manifesting resilience and bullish momentum that underline the metal’s enduring allure in times of both certainty and uncertainty.
This week, the price of gold futures hovered around an impressive $3,458.2, marking an appreciable increase of $4.50, or a 0.13% uplift for the day. This subtle yet promising climb is a pause in a storm of activity that has seen prices leap remarkably from a cycle low of $3,397.9 on Tuesday to an impressive peak of $3,534.1 on Friday morning.
Such a surge in prices is more than just a fluctuation; it is a testament to the metal’s underlying strength. This is particularly true when viewed through the lens of a Gann perspective, which interprets this recent pause not as a sign of weakness but as a reflection of time symmetry at play. Essentially, according to Gann analysis, what we are witnessing is the market taking a breath before potentially embarking on another upward trajectory.
The bullish grip on gold is undeniable, yet, the rhythm of the market points to a brief hiatus, almost as if the scene is set for an imminent Act II of this financial drama. The journey of gold prices through the week is noteworthy. After a period of downward pressure, prices found solid ground at the Buy 2 Weekly level of $3,338 on Tuesday. This critical support level coincided with the completion of a minor 3-day Gann cycle trough, a pivot point from where gold prices pivoted sharply upwards.
The momentum did not falter as by Thursday, gold not only recaptured the VC PMI Weekly pivot of $3,474 but also sailed above the Sell 1 Daily mark of $3,530, brushing resistance slightly beneath the Sell 2 Daily level of $3,579. The market is currently in a consolidation phase, teetering between Buy 1 Daily at $3,446 and the VC PMI Daily pivot at $3,490. This zone is crucial as it is where the next major directional move is anticipated to crystallize.
Delving deeper into the mechanics of market rhythms through Gann time cycles, the clock is ticking towards the maturity of the next 6-day Gann cycle slated for around August 12–13. This cycle is predicted to herald either a renewed surge or a corrective dip, aligning with the current phase of consolidation seen in the market.
Moreover, we stand amidst a dominant 360-day cycle that is in its ascending phase, a cycle that commenced from the major low of October 2024. This massive wave is expected to crest between late August and early September 2025, positioning us in what could be the final rally leg of this cycle. Fascinatingly, a brief dip within the August 12–16 Gann window might present a golden opportunity to buy the dip ahead of the last push higher. Following this, the cycle high zone from August 28 to September 3 could unleash the most aggressive upside momentum seen this year before transitioning into a seasonal or cycle top, and potentially a decline into the next 360-day cycle low around September 28, 2025.
From a technical standpoint, the MACD indicator corroborates the bullish scenario, although a slight rollover in the histogram suggests a period of short-term consolidation rather than a reversal. Volume spikes earlier this week further support the strong conviction behind this rally.
Considering the trajectories ahead, two primary paths emerge. A bullish path would see gold maintaining its stand above $3,446, with targets set at consecutive resistance levels of $3,490, $3,530, $3,579, and eventually $3,610 (Sell 2 Weekly), aligning with the cycle’s strength into late August. Conversely, a bearish path would witness a break below $3,446, testing subsequent support levels at $3,415, $3,401, and down to $3,338 (Buy 2 Weekly), potentially coinciding with the Gann cycle pullback window before another upward thrust.
In essence, gold is firmly in the grasp of the bulls, despite the market’s current rhythm suggesting a momentary pause before an expected resurgence. Traders and investors alike are advised to keep a keen eye on the $3,446–$3,490 pivot zone. A sustained position above this range could very well script another ascent towards cycle highs as we approach the zenith of this upward phase in early September.
It’s paramount to remember that trading derivatives, financial instruments, and precious metals carries significant risk and may not be suitable for everyone. Thus, engaging in such activities should be approached with caution and an informed perspective, considering both past performances and potential future results.
