XAUUSD Forming Ascending TriangleXAU/USD (Gold) is building a very constructive technical structure, forming a tightening rising-triangle (or ascending triangle) on the daily chart. The upper trendline is acting as resistance, while the lower trendline is offering steady support. This compression suggests that a breakout is imminent: if gold clears the upper boundary with strength, it could trigger a significant bullish continuation.
On the macro and fundamental side, gold remains well supported by dovish expectations around U.S. monetary policy, persistent geopolitical uncertainty, and safe-haven demand. Real yields in the U.S. have been under pressure, giving non-yielding assets like gold greater appeal as a hedge. In addition, inflation concerns have not fully subsided, which could continue to drive interest in gold as an inflation play.
From a market dynamics perspective, central banks’ ongoing purchases of physical gold and ETF inflows are likely contributing to the higher-timeframe bullish bias. These flows, combined with tight technical structure, suggest that buyers are positioning for a fresh leg higher. If this breakout plays out, gold’s next target could push toward new nominal highs or record-equivalent levels, depending on momentum.
In terms of strategy, a long entry makes sense on a daily close above the upper trendline, ideally with a retest of that breakout as confirmation. A tight stop could be placed just below the triangle’s lower trendline to manage risk. If executed well, the upside could be very attractive, given gold’s macro fundamentals and the strength of its structural setup.
