Alex Dudov
⬤ Gold is showing calmer price behavior as volatility keeps dropping. Right now, there's no clear chart pattern taking shape, even though the trend structure is still intact. Gold is sitting comfortably above previous breakout zones while consolidating near recent highs.
⬤ Recent price action has been pretty steady after a rally that pushed up to around $5,598 before settling above the $5,000 mark. Old resistance levels near $4,275 and $4,550 are now working as support, with the price maintaining higher lows during this consolidation phase. Instead of forming some kind of topping or reversal structure, the market is just compressing while staying within the broader uptrend.
⬤ The ongoing drop in volatility suggests balance rather than any big directional move building up. Without a defined formation—like a reversal or continuation pattern—the price is basically neutral within the current structure. We've seen similar conditions described in gold consolidates after rally as market waits and broader range behavior in XAU/USD holds near 4895 as gold consolidates below resistance.
⬤ This matters because when volatility contracts like this in commodity markets, it usually comes before a bigger move. The question is which direction. Until we see a recognizable structure emerge, traders are watching to see if Gold keeps consolidating in this range or breaks into a fresh directional phase. The $5,000 level seems to be holding as a psychological floor for now, with the market taking a breather after the recent run-up.
Alex Dudov
