Ascending Under Pressure: Gold Extends Gains on Technical Break and Dollar Softness

Gold finished the week of May 23rd on strong footing, climbing steadily to close near $3,366 per ounce, having staged a controlled but decisive rally off a structurally significant base. While early sessions were defined by compression and indecision, the metal ultimately delivered a bullish breakout, validating several key technical levels and reinforcing its role as a safe-haven anchor amid cross-asset volatility.

The week began with gold holding firm along a rising trendline that had guided price action since the May 15th swing low near $3,160. After a brief test of this ascending support on Monday, price rebounded sharply, reclaiming both the 50- and 100-hour moving averages by midweek. These dynamic support layers aligned neatly with a horizontal demand zone around $3,290–3,300, which had repeatedly held as a pivot throughout the month.

Wednesday marked the structural inflection point. A surge in buying volume lifted gold cleanly above $3,320, breaking a descending wedge that had capped price since late April. What followed was a clean continuation pattern: a brief flag-type consolidation above prior resistance, followed by an impulsive leg higher that extended into Friday’s close.

Importantly, the rally was orderly. While price did accelerate into the final sessions, it did so on controlled volume with shallow pullbacks—suggesting trend participation rather than speculative blow-off. By Friday, gold had touched a weekly high of $3,366, marking a gain of over 4% from Monday’s low and closing near the upper bounds of the rising channel.

The strength in gold was not purely technical. Dollar softness, driven by underwhelming U.S. manufacturing data and a surprise uptick in weekly jobless claims, reduced expectations of further tightening by the Federal Reserve. Meanwhile, geopolitical tensions in Eastern Europe and renewed instability in oil-producing regions reinforced demand for hard assets.

From a structural standpoint, the week’s price action marked a clean break from the prior rangebound environment. The convergence of horizontal and dynamic support—plus the clean reclaim of all major moving averages—signals a shift in gold’s medium-term profile. Should price hold above $3,322, the door remains open for a retest of the April highs near $3,390–3,400, with deeper trend continuation toward $3,450 a possibility if macro tailwinds persist.

As it stands, gold’s technical structure appears both disciplined and robust. Unless invalidated by a decisive break below $3,290, the path of least resistance remains upward.