- Gold traded at $3,378.37 on August 6, consolidating near a critical breakout zone
- Analyst van de Poppe notes a breakout above $3,365 would signal a harsh time for altcoins
- Analyst Rashad Hajiyev points to the $3,340 zone as pivotal for a move toward all-time highs
Gold is trading near a make-or-break point, with analysts watching for either a major breakout or a sharp reversal. On Wednesday, August 6, the precious metal traded at $3,378.37 per ounce, marking a slight 0.06% decline.
This modest dip comes after a volatile session that saw an early spike quickly erased by a pullback. This price action confirms gold is locked in a tight consolidation phase after months of sideways movement, and market analysts believe a significant shift could be imminent.
Analysts Highlight Key Resistance Zones
Prominent analyst Michaël van de Poppe notes that gold is on the verge of a potential breakout. However, he warns that any failure to hold its current level could trigger a sharp decline toward $3,200 or even $3,080.
He emphasizes that a decisive breakout above $3,365 is essential to confirm bullish strength. Crucially, liquidity has already been swept above two recent highs; a technical event that often precedes a strong directional move. This setup points to heightened volatility ahead.
van de Poppe also links gold’s potential move directly to the crypto market. A strong breakout in gold typically signals weakness for risk-on assets like altcoins.
Related: ‘Safe Haven’ Gold Is Winning the Fight Against ‘Risk-On’ Crypto
Historically, August has been a tough month for cryptocurrencies, and a powerful gold rally would likely intensify the selling pressure. He does, however, believe such periods create prime opportunities for accumulation once markets stabilize.
Breakout Watch: $3,340 in Focus
Analyst Rashad Hajiyev offers a more bullish perspective, suggesting gold is positioning to challenge its all-time highs. He identifies the $3,340 zone as a pivotal resistance level. A clean break above this area would signal an end to the long consolidation phase.
Adding weight to this bullish narrative is the recent strength in gold miners, whose performance often foreshadows sustained upward momentum in the underlying metal.
Related: CryptoRank Adds Tokenized Stocks, S&P 500, and Gold to Platform
If gold decisively clears this resistance, the path to new record highs opens up. Conversely, a rejection at this zone could trigger another pullback before a higher attempt is made. Traders are therefore closely monitoring the price action between $3,340 and $3,365 for confirmation of gold’s next major move.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
