Gold (XAU/USD) Technical: Bullish Acceleration Supported Rising Implied Volatility

MarketPulse by OANDA Group

Commodity

Forex

Economic

Summary:

The price actions of Gold (XAU/USD) have staged the expected bullish move, rallied by 2.3% and hit the US$3,435 resistance as highlighted in our earlier publication last Friday, 29 August.

The price actions of Gold (XAU/USD) have staged the expected bullish move, rallied by 2.3% and hit the US$3,435 resistance as highlighted in our earlier publication last Friday, 29 August.The price actions of Gold (XAU/USD) have staged the expected bullish move, rallied by 2.3% and hit the US$3,435 resistance as highlighted in our earlier publication last Friday, 29 August.

For a quick recap, the US$3,435 is considered a significant range resistance on Gold (XAU/USD) as this level has managed to stall prior rallies since its current all-time high of US$3,500 printed on 22 April 2025 and caused Gold (XAU/USD) to oscillate in a choppy sideways range in the past four months.

Gold (XAU/USD) has finally managed to have a proper bullish breakout above the four-month range resistance of US$3,435 in last Friday’s US session, as it recorded a daily close of US$3,447 on 29 August in light of an anticipation of a US Federal Reserve’s dovish pivot in September.Gold (XAU/USD) extended its upward momentum at the start of the week, advancing 0.8% to close at US$3,476 on Monday, 1 September.In this latest report, we will highlight several key technical elements that Gold (XAU/USD) has entered into a potential short to medium-term bullish acceleration phase.

Let’s discuss them in detail, as well as the next short-term directional bias and key levels to watch on Gold (XAU/USD)

Gold (XAU/USD) Technical: Bullish Acceleration Supported Rising Implied Volatility_1

Fig. 1: Gold (XAU/USD) minor trend as of 2 Sep 2025 (Source: TradingView)

Gold (XAU/USD) Technical: Bullish Acceleration Supported Rising Implied Volatility_2

Fig. 2: Gold (XAU/USD) medium-term trend as of 2 Sep 2025 (Source: TradingView)

Gold (XAU/USD) Technical: Bullish Acceleration Supported Rising Implied Volatility_3

Fig. 3: Gold (XAU/USD) with GVZ (implied volatility of Gold ETF) as of 2 Sep2025 (Source: TradingView)

Preferred trend bias (1-3 days)

Maintain bullish bias on Gold (XAU/USD) as the yellow metal kickstarts a potential bullish acceleration phase (see Fig. 1).Watch the US$3,451 key short-term pivotal support. A clearance above US$3,500 (the current all-time high) will see the next intermediate resistances coming in at US$3,520/3,524 and US$3,536/3,548 (Fibonacci extension clusters).

Key elements

● The hourly MACD trend indicator of Gold (XAU/USD) has just flashed out an impending bullish crossover signal above its centreline, which suggests that short-term bullish momentum remains intact (see Fig. 1).

● The recent bullish breakout in the Gold (XAU/USD) above US$3,435 marks an exit from a bullish continuation range configuration, defined as a bullish “Ascending Triangle”. These observations increase the odds of a continuation of its prior impulsive up move sequence (see Fig. 2).

● The daily MACD trend indicator of Gold (XAU/USD) has continued to trend upwards above its centreline after its earlier bullish crossover on Monday, August 25, 2025, which supports a potential change in medium-term trend conditions from sideways to bullish (see Fig. 2).

● The Cboe Gold exchange-traded fund implied volatility (GVZ) has entered into a low volatility environment, as depicted by the narrowing of the Bollinger Bands, called the “Band Squeeze” since mid-July 2025. A “Band Squeeze” or a low “Bandwidth” reading is a prelude to a potential expansion in volatility. An increased implied volatility (GVZ) may trigger a significant up move in Gold (XAU/USD) (see Fig. 3).

● Recent observations between February and March 2025, when a Bollinger “Band Squeeze” in GVZ occurred, preceded a notable rally in Gold (XAU/USD) in April 2025 (see Fig. 3).

Alternative trend bias (1 to 3 days)

Failure to hold at the US$3,451 key short-term support on Gold (XAU/USD) negates the bullish tone for another round of minor corrective decline to retest US$3,435/3,432 pull-back support of the former medium-term “Ascending Triangle” range resistance.

Source: OANDA

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

Analysis

User

24/7

Economic Calendar

Education

Data