Gold futures tested a double top pattern on Monday, briefly rising above $4,738 per ounce before easing, as investors await U.S. Treasury Secretary Scott Bessent’s sanctions announcement scheduled for 14:00 ET. The metal had advanced more than 5% last week, its third consecutive weekly gain, after briefly trading above $4,620 an ounce and approaching three-month highs.
The latest rally followed a surprise decision by the U.S. Treasury to expand purchases of longer-dated government debt, which pushed bond yields and the dollar lower. Analysts note this intervention has revived a trade favoring hard assets like gold amid reduced confidence in the long-term purchasing power of fiat currencies. Treasury Secretary Bessent indicated the buyback program could be expanded further and hinted at a forthcoming fiscal initiative aimed at lowering the cost of government borrowing.
Technical indicators reinforced the upward momentum. Gold moved above the 200-day moving average around $4,513, a level often viewed as a sign of a more positive longer-term trend. The next major technical target cited by analysts is around $4,700 if current momentum persists. However, the formation of a double top pattern at Monday’s intraday high of $4,738.21 suggests potential for a steep pullback once the sanctions announcement is made, according to the analysis.
Geopolitical risks continue to support demand for gold as a store of value. The metal has surpassed the $4,000-per-ounce level that previously served as a key support zone during its correction. Central-bank purchases and renewed ETF demand have further reinforced the recovery, while investor positioning reflects broader diversification amid concerns over U.S. fiscal policy, elevated debt levels, and policy uncertainty.
The World Gold Council has emphasized the role of central-bank demand in sustaining the market, particularly as geopolitical and inflation risks remain elevated. On Monday, gold futures opened at $4,681.44, tested a session high of $4,738.21 and a low of $4,652.40, and were last quoted at $4,735.
