Gold Struggles to Break Above $4,355 Amid Dollar Strength

Gold trading remains constrained within a narrow zone on Friday, with XAU/USD unable to sustain momentum above the $4,355 resistance level. The precious metal is currently positioned around $4,325, reflecting a lack of directional conviction from market participants. Daily candlesticks exhibit pronounced wicks, signaling indecision as buyers and sellers jostle for control. The resurgence of the US Dollar, now trading at one-week peaks above 98.50, continues to weigh on gold prices, despite weak inflation readings from Thursday’s economic data.

Technical Structure: Triangle Consolidation Pattern Emerges

The four-hour chart reveals XAU/USD trapped within an ascending triangle formation, with the upper boundary near $4,355 acting as a formidable ceiling. Price action has consistently failed to breach this level, highlighting seller dominance at this juncture. The technical landscape presents a mixed picture—the MACD indicator sits below the zero line with a flattening histogram, suggesting that bearish momentum may be losing steam. Meanwhile, the RSI at 54.64 maintains a position above 50, providing subtle support for a mild upside bias.

Support levels warrant close attention for traders. The $4,300 mark has proven reliable over recent sessions, with the triangle’s lower boundary positioned around $4,290. Should sellers push lower, the December 12 low at $4,257 becomes the next target zone. On the opposite end, a decisive move above $4,355 would open the door to the 127.2% Fibonacci extension at $4,400, followed by the triangle’s measured objective at $4,450.

Dollar Strength Remains a Headwind

The US Dollar Index’s advance to one-week highs demonstrates resilience despite softer inflation metrics, suggesting that Fed rate-cut expectations for 2026 remain the primary limiting factor for sustained dollar appreciation. This dynamic creates a supportive environment for gold near historical peaks, even as the Greenback maintains upward pressure.

Currency pair analysis shows the USD strengthening notably against the Japanese Yen and other major currencies, reflecting broad-based dollar demand that continues to cap upside momentum in XAU/USD.