Gold Dips Hard, but Huge Technical Pattern Building

The gold market has come under heavy selling pressure over the last two days, with prices retreating after nearly reaching an all-time high. Despite the dip, traders and chartists are looking to technical analysis to theorise that it’s setting up for a major move higher. On daily charts, gold is forming a broad "ascending triangle," which is a pattern often viewed as a classic lead-up to an upside breakout.

An ascending triangle forms when prices make higher lows against a relatively flat resistance level. Each sell‑off attracts buyers sooner than before, compressing price action and building pressure for a decisive move. When increasingly hungrier buyers get wedged into a corner, they can start an often-explosive trend of buying higher. Technical analysts note that such a pattern in a high‑liquidity market like gold is often seen as one of the most reliable bullish setups. If resistance is broken, it typically signals a powerful continuation of the longer‑term uptrend.

We have been closely following Trump's commentary about Fed Chair Powell, but it is important to have a look at what is happening in the background. Treasury Secretary Scott Bessent has been in close contact with Federal Reserve Chair Jerome Powell, reportedly sitting down with him for breakfast or lunch every week, according to Reuters and other sources. Apparently, those regular meetings have recently centred on how many interest rate cuts can realistically be delivered before year‑end. According to people familiar with their conversations, both men have floated the prospect of two cuts later this year. That shift would likely weaken the US dollar and bolster gold.

For now, traders are closely watching support levels, viewing the current weakness as part of the pattern’s consolidation rather than a breakdown. If the ascending triangle completes with a clean breakout, technical targets point well beyond recent highs, setting the stage for a rally that could catch many on the sidelines.

Trump can also be expected to keep posting about huge deals or huge threats, but as we have seen, his power to move markets has faded dramatically. Traders will only risk their portfolios so many times on these hot and cold announcements.