Despite the consolidation between these two SMAs, the price is consolidating in the $4,500-$5,000 range. A break of this range would trigger the next big move in the gold market.
XAUUSD Must Break $5,000 to confirm the Next Bullish Move
A break above $5,000 this time will likely offer a strong basing pattern, which may push prices toward the $5,600 area. The importance of the support zone around the 200-day SMA is further seen in the ascending broadening wedge pattern.
From a technical perspective, this pattern is already broken at the moment, but the 200-day SMA is still protecting the drop. Nowadays, markets are too volatile, so any support line or pattern requires a wide range. Therefore, the real breakout of this range will likely be confirmed after a break below $4,350.