Gold Price Surges Past $4,700 as Bulls Reclaim Key Trendline
The gold price has rebounded from its six-month correction and reclaimed a key trendline. On Monday, gold traded at $4,643.95, a three-month high, after rallying roughly 17% off its July low. December COMEX futures topped $4,700 for the first time in more than three months.
The rally accelerated last week after US federal debt crossed $40 trillion. Treasury Secretary Scott Bessent then doubled debt buyback operations, and the dollar index slipped below 100. Central banks added to the bid with 289 tonnes of purchases in the second quarter, up 62% year over year.
On the weekly chart, the correction bottomed at $3,942.92, matching the 0.5 Fibonacci retracement of the advance that began in 2024. It also sits inside the $3,900 to $4,000 support zone. The week ending August 21 changed the structure, as gold closed above its 20-week moving average for the first time since April.
The daily chart shows the trigger, with gold breaking a descending trendline drawn from the January 28 record in early August near $4,100. Price has climbed about 13% since that break. Daily RSI now reads 71.7, its first print above 70 since January.