The ADX indicator on the 4-hour XAU/USD chart has dropped to a multi-month low, signalling the absence of a clear trend.
At the same time, a technical assessment of price movements allows for the construction of a symmetrical triangle pattern with a central axis around $4,205 — indicating that the current price reflects an equal balance of major drivers, including:
→ Weakening conditions in the US labour market. According to media reports, ADP recorded an unexpected decline of 32,000 private-sector jobs, while Challenger reported 71,000 layoffs in November, bringing the total number of job cuts since the start of the year close to 1.17 million.
→ Rumours that White House economic adviser Kevin Hassett may replace Federal Reserve Chair Jerome Powell in May — a development that has strengthened expectations of more aggressive policy easing in 2026.
It is worth noting that on 1 December, gold briefly rose above the November high — a move that coincided with silver reaching an all-time record (as suggested in our analysis on 27 November). However, the bulls failed to hold the price above $4,245, indicating a lack of sufficient buying interest. It appears that traders require stronger justification to purchase gold at such elevated levels.
Most likely, market participants have adopted a wait-and-see stance ahead of key releases:
→ Personal Consumption Expenditure (PCE) data for September, whose publication was delayed by the shutdown;
→ Next week’s FOMC decision (10 December).
Although the market currently appears balanced, XAU/USD may be functioning like a “compressed spring”. Be prepared for bursts of volatility.
