Gold Breakout Above $4,644 Puts $4,900 Year-End Target Back on Table

Gold prices surged to a three-month high near $4,644 on Monday after breaking a six-month downtrend, putting the $4,700 resistance area back in focus. The metal has recovered about 17% from its July low.

The break above the 20-week moving average for the first time since April suggests that gold is gaining momentum. Daily RSI climbed above 70, while the weekly reading near 60 indicates a less stretched move.

Gold bottomed at $3,942.92 during the correction, close to the 0.5 Fibonacci retracement of the advance that began in 2024. The low also fell inside the $3,900 to $4,000 support zone, while weekly RSI held near 40 instead of reaching oversold territory below 30.

Goldman Sachs maintains a year-end target of $4,900 after cutting its forecast from $5,400 in June. The bank also identified $4,400 as a downside case if the Federal Reserve raises rates.