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Gold Price Forecast: XAU/USD Bull Pennant Breakout to Fresh ATH

Article By: ,  Sr. Strategist
February 1, 2025 6:00 PM

Gold, XAU/USD Talking Points:

  • Spot gold prices hit a fresh all-time-high this week, following a breakout on the back of the FOMC rate decision on Wednesday.
  • XAU/USD tested above the $2800 psychological level but wasn’t able to hold above that into the end of the week, likely driven by profit taking ahead of the weekend.
  • The monthly bar for gold also finishes on Friday and this has been a very bullish outlay following two months of pullback, and this retains bullish potential for fresh all-time-highs as we move into February.

It was a banner year of 2024 for gold with the metal at one point showing a 40% rally, from the February lows to the October highs.

But the final two months of 2024 were a change of pace, as sellers retained control through both the November bar which brought the U.S. election and the December outlay which was largely pushed by the sell-off around FOMC.

January, however, shows buyers getting back in the driver’s seat to push a fresh all-time-high, testing above the $2,800 level.

 

Gold Monthly Chart

Chart prepared by James Stanley; data derived from Tradingview

 

Bull Pennant Resolution

 

The pullback in gold was somewhat orderly, as it arrived in the form of a symmetrical triangle and when combined with the prior bullish trend, made for a bull pennant formation. This began to resolve just after the 2025 open and bulls have now pushed a fifth consecutive weekly gain, following a support test at the $2600 level and leading to the current test of the $2800 handle.

 

Gold Weekly Price Chart

Chart prepared by James Stanley; data derived from Tradingview

 

Gold FOMC Reactions

 

It was the December FOMC rate decision that last delivered a punch to gold bulls, and I’ve highlighted that below with the light vertical line in the middle of the chart. But the swing low produced by that is what helped to produce the support side of the triangle, and it’s also from where buyers started to push a pattern of higher-lows and higher-highs that remains in-play today, with the test of the $2800 handle that has helped to define the ATH that traded last week.

 

Gold Daily Chart

Chart prepared by James Stanley; data derived from Tradingview

 

Gold Shorter-Term, Strategy

 

The bullish trend has been on a brisk pace of late, and this week saw a support test at 2750 which was confluent with a bullish trendline before bulls were able to push to that fresh high. That’s the spot that buyers now have to defend to retain control of the short-term trend and if sellers can push below last week’s low of 2730, a deeper retracement scenario would begin to look more attractive.

Ideally for bulls, however, support will hold above that 2750 spot and there’s two prices in particular that remain of interest for that, plotted at the prior high of 2786 and then a batch of prior resistance at 2766.

 

Gold Four-Hour Price Chart

Chart prepared by James Stanley; data derived from Tradingview

 

 

--- written by James Stanley, Senior Strategist


 

 

Gold, XAU/USD Talking Points:

  • Spot gold prices hit a fresh all-time-high this week, following a breakout on the back of the FOMC rate decision on Wednesday.
  • XAU/USD tested above the $2800 psychological level but wasn’t able to hold above that into the end of the week, likely driven by profit taking ahead of the weekend.
  • The monthly bar for gold also finishes on Friday and this has been a very bullish outlay following two months of pullback, and this retains bullish potential for fresh all-time-highs as we move into February.

 

Gold AD

 

It was a banner year of 2024 for gold with the metal at one point showing a 40% rally, from the February lows to the October highs.

But the final two months of 2024 were a change of pace, as sellers retained control through both the November bar which brought the U.S. election and the December outlay which was largely pushed by the sell-off around FOMC.

January, however, shows buyers getting back in the driver’s seat to push a fresh all-time-high, testing above the $2,800 level.

 

Gold Monthly Chart

Chart prepared by James Stanley; data derived from Tradingview

 

Bull Pennant Resolution

 

The pullback in gold was somewhat orderly, as it arrived in the form of a symmetrical triangle and when combined with the prior bullish trend, made for a bull pennant formation. This began to resolve just after the 2025 open and bulls have now pushed a fifth consecutive weekly gain, following a support test at the $2600 level and leading to the current test of the $2800 handle.

 

Gold Weekly Price Chart

Chart prepared by James Stanley; data derived from Tradingview

 

Gold FOMC Reactions

 

It was the December FOMC rate decision that last delivered a punch to gold bulls, and I’ve highlighted that below with the light vertical line in the middle of the chart. But the swing low produced by that is what helped to produce the support side of the triangle, and it’s also from where buyers started to push a pattern of higher-lows and higher-highs that remains in-play today, with the test of the $2800 handle that has helped to define the ATH that traded last week.

 

Gold Daily Chart

Chart prepared by James Stanley; data derived from Tradingview

 

Gold Shorter-Term, Strategy

 

The bullish trend has been on a brisk pace of late, and this week saw a support test at 2750 which was confluent with a bullish trendline before bulls were able to push to that fresh high. That’s the spot that buyers now have to defend to retain control of the short-term trend and if sellers can push below last week’s low of 2730, a deeper retracement scenario would begin to look more attractive.

Ideally for bulls, however, support will hold above that 2750 spot and there’s two prices in particular that remain of interest for that, plotted at the prior high of 2786 and then a batch of prior resistance at 2766.

 

Gold Four-Hour Price Chart

Chart prepared by James Stanley; data derived from Tradingview

 

 

--- written by James Stanley, Senior Strategist


 

 

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StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

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