XAUUSD Stalls Near $5,100 Ahead of Breakout

Gold moved sharply higher over the last few days and reached new highs.

Price broke above a recent consolidation zone and prior resistance. After the breakout, the move accelerated. The slope steepened, showing strong buying pressure rather than slow accumulation.

The rally continued without a meaningful pullback. Previous highs from December failed to hold as resistance. Once price cleared that area, sellers did not step in with force.

Volatility also increased. The price covered more distance in a short time compared with earlier sessions. This usually appears when demand rises quickly and capital flows into gold.

Why gold is moving higher now

Gold rose as investors moved into safe haven trades during fresh geopolitical and economic uncertainty. Reuters reported spot gold jumping near record highs as traders reacted to trade tension headlines, political risk, and a weaker U.S. dollar.

At the same time, rate cut bets supported the move. When markets expect lower interest rates, gold often benefits because investors give up less yield by holding it. Reuters linked recent gains to rising safe haven demand and shifting macro expectations ahead of central bank decisions.

Central bank buying also stayed in the picture, and that adds steady demand even at high prices. World Gold Council research has repeatedly shown ongoing net purchases by central banks, including strong buying periods in 2025.

Finally, ETF demand improved, which brings in another big pool of buyers. The World Gold Council said December marked a seventh straight month of positive global gold ETF flows, with assets and holdings rising alongside the price. 

Gold trades near a key inflection zone and shows short term indecision after a strong advance.

Meanwhile, price continues to stall around the $5,100 area, which has acted as resistance multiple times on the hourly chart. Each push into this zone has attracted sellers, and price has failed to hold above it. As a result, the structure now resembles a potential double top, with rejection visible near the same level.

Gold Spot U.S. Dollar 1h XAUUSD. Source: TradingView / X

At the same time, downside moves remain contained. Buyers stepped in near the $5,005–$5,010 zone, which aligns with prior consolidation and short term support. That reaction suggests demand still exists below resistance, preventing a deeper pullback for now.

If price rejects $5,100 again, momentum likely shifts lower toward the $5,050 area first, with the $5,005–$5,010 zone as the next key test. However, if gold breaks and holds above $5,111, the current bearish setup weakens. In that case, price opens the path toward the $5,150 region, where the next resistance sits.

Overall, gold remains range bound between support near $5,010 and resistance around $5,100–$5,110. The next decisive move depends on whether price fails again at resistance or confirms a clean breakout above it.