Gold Smashes Through $4,692, Eyes $4,900 Target

Gold prices have extended their rally, breaking through the 38.2% Fibonacci retracement level at $4,692. This development has set its sights on a new target: $4,900.

The metal cleared several technical hurdles last week, including the 23.6% Fibonacci level and both the 100- and 200-day moving averages, without significant resistance. The fact that each of these levels gave way underscores the strength of the current advance and the conviction of buyers willing to step in at progressively higher prices.

The slight strengthening of the dollar did not derail gold's advance, but it did weigh on silver, which slipped $0.05 in spot markets and fell $0.93 in futures markets, settling at $68.59.

The divergence between gold and silver suggests that gold's move is being driven more by safe-haven demand and concerns about the U.S. fiscal and monetary outlook than by dollar weakness alone.