• Gold is hovering around $4,200 as holiday-thinned U.S. trading limits activity, with a break above $4,250 opening the door to further gains.
• Dips remain attractive while the market holds above $3,950, and broader consolidation still appears likely.

Gold markets find themselves sitting at the $4,200 level during the trading session on Thursday, which, of course, was shorter than usual as the futures market will be reacting to the Thanksgiving holiday in the United States and, of course, is closed for several hours. With that being said, I think you need to pay close attention to this $4,200 level.

And if we can break higher than here, I would watch the top of this candlestick at the November 13th session and wait to see if we can break above $4,250. If we can, then I think gold has a real shot at going much higher. I certainly wouldn't short gold at this point in time. And I think if we do pull back from here, more likely than not, we will end up in consolidation anyway. The $4,000 level has the 50-day EMA hanging around it, and that should offer a bit of support.
 

Key Levels and Upside Potential

So, I do like the idea of buying dips at least as long as we can stay above the $3,950 level. As long as that's the case, then I think you've got a situation where you're just looking for value. If we were to break down below the $3,950 level, then I think gold goes looking to 3,500 before it's all said and done, an area that hadn't been very important all year.
 

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Really, at this point, though, I don't think there's much to knock this down. I think if nothing else, we're going to go sideways, but you will get the occasional opportunity. If we take off to the upside, that's fine. We'll probably target the $4,400 level and anything above there. I think you're really starting to talk about the possibility of threatening $5,000 sometime during 2026.

A little bit of stability and sideways action is exactly what the doctor ordered here, as the market had gotten far too ahead of itself. The volume is lower than it was at the initial peak. So that is one big red flag, but we have not seen the follow-through breakdown to really confirm a top quite yet.

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