GOLD approaches a critical inflection inside the triangle

Gold is compressing inside a large triangle on the four hour chart and has returned to the twenty four hundred seventy area which acts as the main sell zone at four thousand one hundred seventy to four thousand one hundred seventy five. The market still fails to break above this region and preserves a sequence of lower highs. A breakdown through the triangle support may open the path toward four thousand forty six three thousand nine hundred ninety seven and three thousand eight hundred eighty six where strong liquidity and the two hundred period moving average converge.

The fundamental picture as of November twenty fifth remains mixed. United States inflation is cooling more slowly than expected which keeps treasury yields elevated and limits the attractiveness of gold as a defensive asset. Market expectations for a Federal Reserve rate cut in the first half of next year persist which supports the metal during pullbacks. Demand from Asian jewelry markets stays muted which adds pressure when yields rise.

Price is approaching a decision point. A rejection from the sell zone may send the market toward four thousand forty six three thousand nine hundred ninety seven and three thousand eight hundred eighty six. A confirmed move above four thousand one hundred seventy five will invalidate the bearish scenario and allow a possible breakout to the upside although the market still looks weaker than the seller for now.

Gold is precious without doubt but inside a triangle nothing shines too confidently until the market shows its choice.