Gold Price Reclaims Key Trendline as Bulls Regain Momentum

The gold price has ended its six-month correction and reclaimed its key trendline. The precious metal broke above its 20-week moving average for the first time since April, closing at $4,643.95 on Monday. This marks a three-month high and follows a rally of roughly 17% from its July low.

The decline from the January record of $5,598 was around 29%, making it one of the largest corrections in recent history. However, the weekly RSI never reached oversold territory below 30, indicating that the correction was part of a larger bull trend rather than a reversal.

Gold has been driven higher by several factors, including the US federal debt crossing $40 trillion and central banks' increased purchases of the metal. The dollar index also slipped below 100, contributing to gold's rally.