Gold Soars 4.2% in Single-Day Rally as Central Banks and Geopolitics Ignite
Gold prices surged 4.2% in a single day to hit $4,308, marking its largest one-day gain in five months.
The increase broke out of a descending triangle consolidation pattern and rose above key moving averages, signaling bullish technical signals across the board.
The rally was driven by multiple catalysts, including Trump's remarks on negotiations to reopen the Strait of Hormuz, which ignited geopolitical risk premium expectations.
Global central bank gold reserves data also expanded more than expected in the second quarter, with South Korea's central bank resuming gold purchases after a 13-year hiatus.
The Bank of Korea plans to bid for 4-5 tonnes of gold output per year from domestic copper and zinc smelting, keeping reserves at about 104.4 tonnes.