On August 20, the U.S. Treasury expanded its long-term bond buyback program, which led to a significant drop in Treasury yields and a weaker dollar, serving as the direct catalyst for the sharp rally in gold prices. Although the Federal Reserve's meeting minutes retained some hawkish viewpoints, the negative impact had already been priced in by the market ahead of time.

Central bank gold purchases globally provide medium-to-long-term support, while geopolitical tensions preserve gold's safe-haven appeal. Macroeconomic news amplified market volatility, but technical structures have become the primary guide for price action. Spot gold is currently trading near the 4485 level, with the morning session touching a high of 4527.

Earlier in the day, gold remained in a low-range consolidation pattern, with rebounds failing to break through key resistance. During the U.S. session, the Treasury's unexpected decision to double the scale of long-term bond repurchases disrupted the market, causing the dollar index to drop sharply. This fueled a surge in gold prices, pushing the metal back above the 5-day and 10-day moving averages and forming a bullish engulfing reversal candlestick pattern.

The MACD indicator has turned into a golden cross at lower levels, and the Bollinger Bands are opening upward, suggesting that bulls have regained control of the market. However, the short-term RSI has entered overbought territory, indicating a potential pullback to digest recent gains. On the 4-hour chart, consecutive bullish candlesticks have broken upward, with prices stabilizing above the MA20 and MA60, forming a bullish alignment in the moving average system. The Bollinger Bands are expanding upward, and the MACD continues to operate in a golden cross mode.

On the hourly chart, the rapid rally has pushed indicators into overbought conditions, pointing to a possible technical correction in the short term. After such a significant surge, the market is prone to high-level whipsawing, so traders should wait for a pullback to confirm support before entering positions rather than chasing the rally blindly.

For the day ahead, the immediate resistance to watch is the overnight high around 4527. If the price extends higher, the next level to monitor is near 4590, although this scenario would likely require continued weakness in the dollar index. On the downside, the focus is on the previous swing high around 4450, which could be tested as support. The 5-day and 10-day moving averages have risen to near 4430 and 4400, respectively, but their short-term significance is limited and should only be noted for reference.

Trading recommendations: 1. For gold, consider entering a long position near 4485, with a stop loss below 4475 and targets set at 4520-4530. Be cautious about chasing rallies after new highs are broken.