Gold is starting the final week of February on a constructive note. Price is pushing higher and is now trading at the highest levels seen this month. That is particularly noteworthy given how January ended, with a sharp and aggressive sell-off that damaged short-term sentiment.
From a technical perspective, gold has developed an ascending triangle pattern. What makes this structure unusual is the context. Ascending triangles typically form after an established uptrend, acting as continuation patterns. In this case, however, the triangle emerged after a corrective downswing. That shifts the interpretation slightly, but it does not invalidate the formation itself.
The key level here is the horizontal resistance forming the upper boundary of the triangle. Price is currently attempting to break above that ceiling. If gold manages to hold above this resistance on a daily closing basis, it would activate a clean buy signal. In that scenario, the market could quickly aim toward retesting the previous all-time highs.
On the bearish side, the lower boundary of the structure remains crucial. A break below the rising support line, marked in red or blue depending on the chart layout, would invalidate the ascending triangle. Such a move would cancel the bullish setup and generate a proper sell signal, signaling that the recovery attempt has failed.
For now, momentum favors buyers. The breakout attempt is underway, and as long as gold sustains levels above former resistance, sentiment remains positive with upside potential back toward record territory.