Gold Breaks Above $4,500 as Rally Extends into Third Week
The price of gold has broken above $4,500 and is on track for its third consecutive weekly gain. This comes after spot gold reached approximately $4,550 per ounce, marking its highest level since early June. The metal has gained around 4.35% this week, with a weaker US dollar, shifting expectations for Federal Reserve policy, and renewed concerns about the US bond market contributing to the rally.
The move above $4,500 is significant, as it represents a major psychological level for gold traders. Just weeks ago, gold was trading below $4,200, but has since broken through several key levels, including $4,300 and $4,400. Australian investors are now watching whether the metal can hold above $4,500 and extend its rally towards $4,600.
The technical setup remains constructive as long as XAU/USD holds above approximately $4,460-$4,500. A sustained move above recent highs could bring $4,600 into focus, with medium-term levels of $4,700 and $4,800 becoming more relevant beyond that. However, a decisive break below $4,400 would represent a significant deterioration in the bullish structure.