Gold is struggling to act like a safe haven
Gold prices have come under pressure as oil prices and bond yields rise, while the US dollar continues to strengthen. Although gold is often viewed as a safe-haven asset, that has not been the case since March, when tensions in the Middle East began to escalate.
Instead, gold has traded more like a risk asset, and that dynamic may continue if higher rates and a firmer dollar keep weighing on demand for non-yielding assets.
A descending triangle is forming around support
Gold has been in a major downtrend since mid-May and has failed several times to move beyond its 20-day moving average. Since mid-June, the metal has found support in the $3,950 to $4,050 region.
Taken together with the prevailing downtrend, that support area appears to be forming a descending triangle. These are typically viewed as bearish continuation patterns, meaning the risk is that consolidation resolves lower once support gives way.
If the $3,950 to $4,050 region breaks, the next area of technical support appears to sit around $3,650.
Gold - Cash, 2026 - present
