Gold Price Ends 6-Month Correction as Bulls Reclaim Key Trendline
Gold price trades at $4,643.95 on Monday, a three-month high, after rallying roughly 17% off its July low. December COMEX futures topped $4,700 for the first time in more than three months.
The move closes out a correction that started at the January record of $5,598 and ran about 26 weeks. Both the weekly and daily charts now show that the downtrend has been broken.
The rally accelerated last week after US federal debt crossed $40 trillion. Treasury Secretary Scott Bessent then doubled debt buyback operations, and the dollar index slipped below 100. Central banks added to the bid with 289 tonnes of purchases in the second quarter, up 62% year over year.
Gold hits $4,700 for the first time in more than 3 months 📈 📈 pic.twitter.com/nhFU46Fzc0
— Barchart (@Barchart) August 24, 2026
Weekly Chart Reclaims the 20-Week Moving Average
On the weekly chart, the correction bottomed at $3,942.92. That level matches the 0.5 Fibonacci retracement of the advance that began in 2024. It also sits inside the $3,900 to $4,000 support zone.
Gold slipped under $4,000 during that test. Yet weekly RSI bottomed near 40 and never reached oversold territory below 30. That behavior suggests a correction inside a bull trend rather than a reversal.
Measured from the January high, the decline reached roughly 29% over about 26 weeks.
The week ending August 21 changed the structure. Gold closed above its 20-week moving average for the first time since April. The same candle closed above the 0.382 Fibonacci retracement at $4,333.52.
That retracement sits inside the $4,300 to $4,400 zone, which capped the price from November 2025 through May 2026. Clearing a Fibonacci level and a six-month supply zone together strengthens the signal.
Weekly RSI now reads near 60. Therefore, momentum still has room before it looks stretched.
Gold Price Levels to Watch as Daily RSI Tops 70
The daily chart shows the trigger. Gold broke a descending trendline drawn from the January 28 record in early August near $4,100. Price has climbed about 13% since that break.
The advance then paused inside the $4,300 to $4,400 zone between August 6 and August 19. That consolidation indicates absorption rather than an exhausted move.
Daily RSI now reads 71.7, its first print above 70 since January. Weekly RSI at 60 tells a different story. In contrast to the daily picture, the medium-term chart still has headroom.
That combination favors a pause before the next resistance rather than an immediate rejection.
Resistance starts at $4,700, then the $4,750 to $4,800 band, which aligns with the 0.236 Fibonacci retracement at $4,816.80. Above that, the measured move from the $3,900 base projects toward $4,900.
Goldman Sachs holds the same $4,900 year-end target, cut from $5,400 in June. The bank also flagged $4,400 as a downside case if the Federal Reserve raises rates instead.
Support now begins at $4,500. A weekly close back below $4,300 would invalidate the breakout. A return to $3,900 would end the bullish case.
Gold still trades about 17% below its record. Friday’s weekly close will confirm or reject the reclaim, and it lands on the same day Federal Reserve Chair Kevin Warsh delivers his first Jackson Hole address.
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