Gold prices experienced a powerful rally on Wednesday, August 19, with spot gold climbing over 4% in a single day to reach a high of $4,524.08 per ounce, before closing at $4,522.78—marking the strongest level since early June. US gold futures also advanced, settling nearly 2.8% higher at $4,545.30. This sharp upswing was not driven by safe-haven demand but rather by the US Treasury's unexpected expansion of its long-term bond repurchase program, which effectively pushed down long-end yields and weakened the US dollar, opening the door for higher gold prices. Additionally, former President Trump announced the toughest economic sanctions on Iran, adding a layer of geopolitical uncertainty to the market.

Traders should keep a close watch on today's US initial jobless claims data and speeches from Federal Reserve officials, as these could trigger intraday volatility. The technical setup remains constructive. Over the past two sessions, the call was to stay bullish as long as $4,310 held, with a break below that level signaling deeper correction. On the current chart, gold has decisively broken out of the $4,310–$4,450 consolidation range, and the daily candlestick shows a strong bullish close, though a pullback and consolidation phase is likely after such a sharp move. The $4,430–$4,453 zone, previously resistance, now serves as key support; a break below this area would indicate weakening bullish momentum and suggest a corrective phase before the next leg higher. On the upside, the $4,510–$4,530 region represents a dense trading zone, and a volume-backed breakout could extend gains toward $4,600.

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and assume all risks associated with their trading decisions.