Usman Salis
⬤ Gold (XAU) is trading in a narrow range after a solid rally earlier this quarter, with recent action showing limited follow-through in either direction. There's been little movement in gold lately, testing trader patience as consolidation drags on. The XAU/USD chart shows price holding below recent highs while staying supported above key levels from the prior advance.
⬤ Gold has stabilized after pulling back from its latest peak, oscillating in a tight band. This sideways drift follows a strong push higher that kicked off earlier this year, suggesting a breather rather than a reversal. Support is holding near the lower end of the recent range, while attempts to break higher have lacked momentum so far, keeping price boxed in.
⬤ The current phase looks like consolidation within a bigger bullish structure. While short-term volatility has cooled off, the larger trend remains intact on the chart, with levels still elevated compared to earlier months. An upside target of $4,700 is floated as a potential next objective once consolidation wraps up, though no immediate trigger is on the horizon. For now, gold continues to trade methodically, showing balance between buyers and sellers.
⬤ This consolidation matters for the broader market because gold often reflects shifts in macro sentiment—think inflation expectations, monetary policy moves, and overall risk appetite. Extended sideways action after a rally usually signals digestion of gains before the next directional move. As gold remains range-bound, how this consolidation resolves could offer clearer signals about momentum in precious metals and related assets, influencing sentiment across commodities markets.
Usman Salis
