Gold futures climbed to a three-month high on Wednesday, trading near $4,663.70 after reaching an intraday peak of approximately $4,690.40. The advance extends a rebound from a five-day low of $4,378, reinforcing a short-term bullish structure and shifting momentum in favor of buyers.
According to technical analysis from VC PMI, the daily volume-weighted average price (VC PMI) near $4,646 now serves as the primary short-term equilibrium level. Price action above this threshold maintains the upward bias, with the first correction zone identified at the daily buy 1 level of $4,601. Deeper support is seen at the daily buy 2 level of $4,522, followed by weekly buy 1 at $4,583 and weekly buy 2 at $4,476.
On the upside, the market is approaching the daily sell 1/sell 2 resistance area in the upper $4,700s. The analysis projects major weekly objectives at weekly sell 1 of $4,788 and weekly sell 2 of $4,895, contingent on sustained momentum. The preferred strategy remains to hold core long positions and use corrections toward VC PMI extreme levels as buying opportunities rather than initiating short positions in a bullish breakout.
The analysis highlights an important short-term cycle anchor at the $4,378 low, with the sharp reversal suggesting the start of a new expansion phase. The next critical cycle window is identified as August 24–28, during which traders should monitor whether gold consolidates above $4,644 or accelerates through $4,690. From a Square of 9 perspective, the psychological and geometric zones around $4,700, $4,788, and $4,895 are gaining significance, with a confirmed breakout above $4,788 potentially triggering another acceleration toward $4,895.
Fundamentals are aligning with the technical breakout. Gold surged to a three-month high on August 21 as the U.S. dollar softened and technical momentum strengthened. U.S. gold futures settled around $4,680.60, while Treasury actions to increase long-duration bond buybacks contributed to volatility in yields and the dollar.
Longer-term support continues to stem from central-bank demand. The World Gold Council reported net purchases of 289 tonnes in the second quarter of 2026, and its outlook anticipates investment demand and central-bank buying to remain key sources of support through the remainder of 2026.
The trading outlook remains constructive as long as gold holds above the $4,644–$4,601 range, with momentum favoring a move toward $4,700–$4,788 and potentially $4,895. Corrections toward daily or weekly VC PMI means should be viewed as buying opportunities while the bullish structure remains intact. A sustained break below $4,583 would weaken the immediate breakout and expose deeper support levels at $4,522 and $4,476.
