Gold has made three very large, major triangle formations on its way down. This slightly ugly pattern indicates persistent accumulation with demand being quite strong. These formations developed from early 2024 to late 2025. They highlight the precious metal’s astounding ability to weather even the worst economic turmoil. Markets continue to look ahead to this coming Wednesday’s core Personal Consumption Expenditures (PCE) report. Traders and investors will be scanning gold’s price action for clues as to what lies ahead for the broader market.
By the time of Gold’s announcement in late June of 2024, her triangle structure was starting to take form. This cumulative development fueled a huge breakout in July. More importantly, this breakout marked a reversal in market sentiment, as investors began showing confidence in gold as a safe-haven asset. After this first triangle breakout, a second triangle formation appeared in early 2024, reinforcing the bullish sentiment surrounding gold even more. In early 2025, the second triangle broke to the upside. This action adds fuel to the fire of bullish sentiment that gold is moving upward.
Recent Developments in Gold’s Price Action
The latest big triangle formation for gold, which was originally drawn back in 2025, broke out sharply in mid-September. This breakout quickly propelled gold prices well above $3,700, making this a significant breakthrough for the precious metal. These complex formations have offered accurate continuation signals for the past year and a half. Together, they illustrate that gold’s recent price movements are not just random fluctuations, but rather the manifestation of an emerging trend. The long lasting nature of these patterns further demonstrates the macro bullish trend of gold prices. Consequently, increasing numbers of investors are looking to gold for stability in these tumultuous economic times.
What’s more, the S&P Global Composite Purchasing Managers’ Index (PMI) ticked down to 53.6 in September from 54.6 in August. This decline reflects a less robust economic momentum, which may have a direct impact on market sentiment about gold. When economic indicators become volatile, hundreds of thousands of investors flock to gold as a safe haven. They view it, instead, as protection from future market swings.
Anticipating Economic Indicators
As markets await Friday’s core PCE report, analysts are keen on gleaning fresh policy cues regarding the future direction of gold. This report is very important because it gives us early insight into inflation trends that can push monetary policy makers’ decisions one way or another. Investors are looking very closely at any economic indicator. Specifically, they’d like to know how these might affect the Federal Reserve’s interest rate and monetary policy-making.
Chairman of the Federal Reserve Jerome Powell’s testimony last week didn’t provide much insight on what is in store for gold. Together, his comments suggested a very deliberate approach to raising interest rates. They failed to deliver on providing any discernable path for inflation targets or inflationary tightening of the money supply. This uncertainty has resulted in an increasingly challenging environment for traders as they look to gauge what it means for gold prices in the days ahead.
The Broader Economic Context
The relationship between gold prices and major economic variables like inflation, interest rates, and the US dollar are key to analyzing market interactions. So as inflationary pressures start to come back, the hedge against inflation argument for gold gets much stronger. Past performance has shown that gold performs very well during periods of economic instability and rising inflation. This is what makes it such an attractive investment for risk-averse investors.