Gold prices continue to trend upward. Over the past week, the precious metal gained more than 5%, driven primarily by the US Treasury Department’s decision to expand its buyback program for long-term bonds. This move resulted in declining yields on American notes and rising concerns over the sustainability of the country’s budget. The dollar may feel the heat, albeit modestly. In the meantime, gold appears to be thriving as an alternative safe haven.
As for the Federal Reserve (Fed), its future monetary path remains unclear. The Personal Consumption Expenditures (PCE) index—released on August 26—showed that US inflation held at 3.7% year-over-year, against market expectations of a decline to 3.6%. This report immediately impacted investors’ projections regarding a September hike, lifting them to around 40%. Elevated interest rates tend to weigh on the precious metal, as they increase the opportunity cost of holding bullion, which generates no interest income. However, current demand seems to be exceptionally strong: prices have swiftly recovered from a recent correction.
On the technical front, gold is confidently climbing, having settled above the psychologically important $4,500 level. Short‑term pullbacks are quickly being bought up by market participants, confirming that buyers are firmly in the driver’s seat. Their next upside target could be the resistance zone near $4,900—a four-month peak.
The overall recommendation is to buy gold at the current price of $4,600, aiming for $4,900 per troy ounce within a couple of weeks. To mitigate the risk of adverse market movements, place a Stop Loss order at $4,200.
This content is for informational purposes only and is not intended to be investing advice.
