Gold extended its advance into a third straight weekly gain, breaching the $4,600 psychological level on Friday after reclaiming the $4,500–$4,550 zone. Spot gold reached approximately $4,604, its highest since May 15, according to the analysis.
The move follows a shift in market structure on the daily chart, marked by successive higher highs and higher lows. The analysis describes this as a transition from a corrective phase, which included a base around $4,050–$4,100 in June and July, to an accumulation phase and then bullish expansion. The recovery established a higher low near $4,050–$4,100, reclaimed $4,225 and broke above $4,390 before accelerating through $4,500.
The bullish momentum is attributed to a combination of factors. A softer US dollar, trading near a three-month low on August 21, has reduced the cost of gold for non-US investors. Ten-year Treasury yields near 4.69% have also declined, partly due to the US Treasury’s expanded long-duration debt buyback programme. Additionally, growing concerns over US fiscal sustainability and shifting expectations around US monetary policy have supported the metal’s appeal as both an interest-rate trade and a hedge against fiscal and currency risks.
Central-bank demand remains structurally supportive, with the World Gold Council’s 2026 survey showing 89% of reserve managers expect global central-bank gold holdings to rise over the next 12 months. Data for the first half of 2026 indicated significant purchases by Poland, Uzbekistan, China and Kazakhstan. Investment demand, while sensitive to real yields and policy expectations, has also shown signs of improvement, including positive flows into Chinese gold ETFs in July and August.
Technically, the analysis identifies $4,600–$4,605 as the immediate resistance zone. A sustained hourly or four-hour close above this level would strengthen the continuation setup, targeting approximately $4,635 and then $4,670. The next major upside area is seen around $4,720–$4,770, with $4,721.73 noted as a significant historical reference level.
On the downside, the first support zone is $4,570–$4,575, followed by $4,540–$4,550 and the critical $4,500–$4,510 level. A deeper correction into $4,450–$4,480 would not necessarily invalidate the bullish trend but could represent a retest of the recent breakout structure. A sustained break below $4,390–$4,400 would materially weaken the current bullish structure.
The analysis maintains a bullish bias above $4,500, recommending dip-buying over chasing rallies at elevated levels. It notes that while the fundamental backdrop remains supportive, risks include potential profit-taking, weaker jewellery demand at higher prices, reversals in ETF flows, rising real yields or a stronger dollar.
