However, the gold price attempted a secondary push higher, reaching toward $4,250, but pulled back sharply last week. The failure to hold above $4,250 reflects strong volatility and ongoing consolidation below the key black-dotted trendline resistance, which has acted as a cap since October.
While the current correction in November still fits within a bullish momentum structure, prices may continue to consolidate or correct before the next breakout. Investors may closely monitor the $3,900–$4,000 support zone. If this zone fails, an extended correction toward $3,700 could follow.
The long-term chart also reveals a strong bullish structure forming within the broader ascending channel. An inverted head-and-shoulders pattern developed between 2021 and late 2023. This pattern has supported the broader uptrend. As long as gold remains above $3,200, the long-term upward trajectory stays intact.
The $5,000 level stands as the next significant resistance on the long-term chart. Therefore, investors are likely to view any near-term correction in November and December as a strong buying opportunity for 2026.
Gold’s Parabolic Momentum May Outweigh Overbought Risks
Despite the strong bullish momentum in the gold market, the biggest challenge remains the extremely overbought condition. The gold price has reached overbought levels on a long-term basis.
This overbought condition is clearly visible using the RSI, which has risen to levels not seen since the 1980s, when gold peaked and entered a multi-year correction phase.