FXOpen
The daily chart of XAU/USD shows that the Average Directional Index (ADX) has reached its lowest level since the beginning of 2025, indicating a significant decline in gold price volatility.
Yesterday’s release of the US Producer Price Index (PPI) initially triggered a sharp spike in gold prices, but the gains were short-lived, with the price quickly reverting to previous levels. This price action aligns with a broader market narrative of equilibrium—where supply and demand are in relative balance, and the market appears to be efficiently pricing in key influencing factors, including geopolitical tensions and tariff-related developments.
However, this fragile balance may soon be disrupted.
Technical Analysis of XAU/USD
From a broader technical perspective, gold remains within a long-term ascending channel (highlighted in blue) in 2025. Key observations include:
→ Attempts to rebound from the lower boundary of the channel (marked with arrows) lack conviction. Bulls are not capitalising on these opportunities to reignite the uptrend, suggesting a potential exhaustion of buying interest.
→ A trendline drawn across the major highs of 2025 has proven to be a strong resistance level. All recent breakout attempts have failed at this barrier.
As a result, the XAU/USD chart is showing signs of forming a large-scale triangle pattern, with its axis centred around the $3,333 level. If bulls continue to falter in extending the multi-month rally, it could encourage bears to challenge the lower boundary of the ascending channel, increasing the risk of a downside breakout.
Start trading commodity CFDs with tight spreads (additional fees may apply). Open your trading account now or learn more about trading commodity CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Defence Sector Shares Advance
Recent developments, including the operation in Venezuela and unrest in Iran, are driving gains in defence sector equities. This week in particular:
→ The US President proposed increasing the military budget from USD 901 billion in 2026 to USD 1.5
Market De-Risking Ahead of the US Employment Report: Euro and Pound Under Pressure
European currencies have retreated from local highs amid a decline in risk appetite and ahead of the release of key US labour market data. Market participants are opting to reduce exposure before the publication of the employment report, which could
AUD/USD Is Under Bearish Pressure
As indicated by the AUD/USD chart, the Australian dollar has fallen below the 0.6680 level today, with the decline from Wednesday’s high (A) exceeding 1.1%.
Key bearish drivers include:
→ Declining inflation expectations. Data released on Wednesday