Gold flirts inside a wedge ahead of Liberation Day Address
Updated Updated Tue, 2025 May 27 04:40
- Gold flirts within the wedge channel ahead of the White Liberation Day address
- Gold has softened after recent reversal, but sentiment remains focused on a possible move above key level of $3150
- $3100 is a key support level and $3150 is a key resistance level
Gold continues to trade within a wedge channel as markets await key developments, including President Trump’s address after market close. Despite a recent pullback, sentiment remains watchful, with some market participants observing a potential test of the $3,150 level, which previously acted as resistance. On the downside, $3,100 remains a key technical level, having served as support in recent trading sessions.
Market participants will monitor Trump’s remarks, as they could influence sentiment and affect gold’s next move. A move above $3,150 could reflect increased interest, while a decline below $3,100 may be viewed as a sign of short-term pressure.
Is gold price trapped within the wedge pattern?
Gold price has surged to record highs in recent days, surpassing $3,100 per ounce. This increase has been partly driven by investor concerns over inflation linked to recent tariff announcements by President Donald Trump.
Technical analysis of gold’s price movement shows it is currently trading within a wedge pattern. The price has been confined between converging trendlines, indicating a period of consolidation. This pattern can sometimes precedes significant price movements, either upward or downward, depending on broader market drivers.
The apex of the wedge is approaching, suggesting that a breakout or breakdown could occur. Factors such as upcoming policy decisions, geopolitical developments, and economic indicators will likely influence which direction gold will move.
Monitoring these technical patterns alongside fundamental factors can help market observers better understand potential price drivers.
