Consolidation Near the Peak

Gold prices have entered a consolidation phase, oscillating within a narrowing range, which could be indicative of a forthcoming significant move. The Bollinger Bands on the chart are beginning to tighten, often a precursor to a breakout. Currently, prices hover just beneath the previous all-time high, suggesting that gold is testing critical levels.

The recent formation could be interpreted as a bull flag or pennant, typically a continuation pattern in a strong uptrend. Such a structure, forming right below a previous peak, could signal the onset of another bullish wave if it’s decisively breached. However, it's essential to wait for clear confirmation—a definitive close above the pattern—before considering the bullish scenario fully in play.

On the technical indicators front, the MACD sits below the baseline, pointing to lingering caution, while the RSI remains neutral, suggesting there is neither an overbought nor an oversold condition at present.

Given the proximity to the all-time high and the tightening of the Bollinger Bands, traders should stay alert to a potential breakout or breakdown. A move above the consolidation could reignite bullish sentiment, while a drop below could see a retest of lower support levels.