Gold prices continue to strengthen as XAUUSD extends its bullish momentum on the daily chart, marking a decisive move higher at the start of 2026. The latest price action reflects sustained buying interest supported by trend indicators and volatility expansion.
XAUUSD Daily Chart Overview
On the 1-day timeframe, XAUUSD is trading near 4605, registering a sharp daily gain. The overall structure remains firmly bullish, with price consistently forming higher highs and higher lows since the breakout observed in early September.
Trend Structure and Moving Average Behavior
The 9-period Simple Moving Average (SMA) is trending upward and remains positioned below the current price. This alignment confirms that short-term momentum is supporting the broader bullish trend. Repeated price reactions near the SMA have acted as dynamic support, indicating controlled pullbacks rather than trend weakness.
Bollinger Bands Indicate Volatility Expansion
The Bollinger Bands (20, SMA, 2) show a clear expansion, reflecting rising volatility in favor of the uptrend. Price is currently trading near the upper band, suggesting strong bullish pressure. Importantly, the middle band continues to slope upward, reinforcing trend continuation rather than exhaustion.
Price Action and Market Structure
After a brief consolidation phase during November, gold resumed its upward trajectory through December, maintaining structure discipline. The recent candles show strong bullish bodies with limited lower wicks, indicating demand dominance and reduced selling pressure at higher levels.
Key Technical Observations
| Technical Element | Observation |
|---|---|
| Market Bias | Bullish |
| Trend Direction | Higher highs and higher lows |
| SMA (9) | Rising and acting as dynamic support |
| Bollinger Bands | Expanding with price near upper band |
| Volatility | Increasing in favor of buyers |
Outlook Based on Current Chart Structure
As long as XAUUSD remains above its rising short-term moving average and continues to respect the bullish channel formed since September, the prevailing trend remains intact. Any near-term pullbacks appear corrective in nature within a broader bullish framework, supported by strong momentum and volatility alignment.
Final Verdict
The daily chart of XAUUSD reflects a well-established bullish trend supported by moving average structure and Bollinger Band expansion. Price action near record levels highlights sustained demand, with technical indicators continuing to favor trend continuation under current conditions.
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