Gold Surges Beyond $5200, Poised for Seventh Straight Monthly Advance
Gold advanced sharply in early US trading on Friday after moving within a tight range through the Asian and European sessions, as buyers regained momentum following a three-day consolidation beneath the February 24 recovery peak at $5249.
The broader technical outlook remains constructive. A break above the upper boundary of a triangle pattern on the daily chart has generated an initial bullish continuation signal, though a sustained move beyond the $5249 high is required for confirmation.
Today’s push above the $5200 mark, which had capped gains over the past several sessions, is an encouraging development. However, a daily close above this level is needed to validate the breakout.
At the same time, some technical indicators point to possible near-term challenges. The daily Tenkan-sen and Kijun-sen, while still in a bullish configuration, have flattened, and the 14-day momentum indicator continues to ease and diverge from price action, signaling that upside progress may face additional resistance.
Fundamentals, however, remain supportive. Ongoing concerns about a potential escalation in US–Iran tensions, renewed conflict between Pakistan and Afghanistan, and rising uncertainty surrounding US tariffs are sustaining safe-haven demand.
On higher timeframes, the bullish structure remains firmly intact. Gold is on track for a fourth consecutive weekly gain and a seventh straight monthly advance, with the metal up roughly 9% in February.
In the near term, prices continue to hold comfortably above the 61.8% Fibonacci retracement of the $5298/$4402 correction, suggesting that bulls are reasserting control following the recent pullback and that the corrective phase may be nearing completion.
The previously broken $5200 level now acts as initial support, followed by stronger levels at $5171, marking the upper boundary of the former triangle, $5141, the broken 61.8% Fibonacci retracement that capped prices over the past three days, and the psychological $5100 handle.
Res: 5249; 5300; 5350; 5400
Sup: 5200; 5141; 5100; 5045
