XAU/USD breaks $3500 resistance in textbook technical breakout pattern

XAU/USD has surged past the critical $3500 resistance level, completing a five-month consolidation pattern that began after reaching record highs in April. The precious metal has been in a parabolic bull market since breaking above $2000 post-pandemic, with the current breakout validating the long-term uptrend. Technical indicators suggest strong momentum as gold cleared the consolidation range with increased volume, targeting the next psychological level at $3600. The breakout is supported by ongoing concerns about global economic uncertainty and expectations of Federal Reserve rate cuts beginning in September. Traders are closely watching the $3500 level, which should now act as support, while the 20-day moving average at $3450 provides additional backing. The textbook nature of this breakout pattern suggests continued bullish momentum, with potential acceleration if upcoming US employment data disappoints and reinforces dovish Fed expectations.