Gold market analysis

"Gold Price at $4,510 Likely to Act as Intraday Resistance" – Completed on 8/20/2026 at 10:52

Yesterday, gold prices surged sharply, with spot gold reaching a high of $4,524.32. This morning, after opening in Asia, the price hit a peak of $4,527.67 within the first five minutes but then declined steadily, falling as low as $4,484.67 before rebounding. However, it failed to regain the $4,500 level. Yesterday’s daily range exceeded $200—the second time since August 5—and formed a bullish candlestick pattern similar to that seen on August 5. Could this signal a repeat of the subsequent trend—further gains followed by consolidation at higher levels?

The sharp rise in gold was primarily driven by the U.S. Treasury's announcement that it would increase its bond buyback program for 10- to 30-year maturities from the current $2 billion to a minimum of $4 billion, aimed at supporting market liquidity and easing pressure caused by rising bond yields. The Treasury’s move effectively increases the supply of dollars while reducing the supply of U.S. Treasuries, thereby putting downward pressure on both the dollar and bond yields. Indeed, net inflows into U.S. equities have surged dramatically this year—from $92 billion in January to between $535 billion and $594 billion in July—significantly tightening dollar liquidity.

As a result, gold prices were naturally stimulated to climb rapidly. On the daily chart, yesterday’s rally brought gold close to the 61.8% retracement level of the largest decline since April 17, at $4,528.53. Additionally, the $4,510 level lies along Gann’s square at the 315-degree angle, marking a weak resistance (or support) zone, increasing the likelihood of short-term consolidation. For now, the initial correction target is around $4,450, with $4,410 shifting from strong resistance to strong support, and $4,300 forming the next stronger support level. Following a significant advance, gold typically experiences a meaningful pullback, and today’s rebound is expected to be capped by the $4,510 level.

The above information is for reference only and does not constitute investment advice.