Gold Breaks Down Bearish Trend, Eyes $4,300 Amid Market Volatility

Gold prices surged nearly 2% on Wednesday to reach $4,155, breaking a descending trendline that had capped every rally since February's all-time high of $5,598.

The breakout occurred in a week with significant market events, including a 63.6% chance of a September Fed rate hike and the release of Friday's Nonfarm Payrolls (NFP) report.

Ash Crypto estimated that the surge added nearly $1 trillion to the valuations of gold and silver in eight hours.

The tightest Bollinger Squeeze in a year finally fired on Monday, with extreme volatility compression observed on the daily chart of SPDR Gold Shares (GLD).

Historically, similar compressions preceded both strong moves upward and breakdowns. Wednesday's jump suggests this one may be resolving upward.