Over the past 24 to 48 hours, gold prices (XAUUSD) have shown a significant upward movement. The closing price on August 19 was $4,520.9, marking a notable increase from the previous day. This sharp gain was primarily driven by the U.S. Treasury’s announcement to boost the buyback of long-dated bonds, which led to a decline in the 10-year Treasury yields and triggered a strong rebound in gold prices.

The Treasury’s move reflects an effort to stabilize credit markets by increasing long-term bond purchases, fostering cautious optimism about the economic outlook among investors. This supportive policy action enhanced gold’s safe-haven appeal amid a weakening dollar and diminished odds of Federal Reserve rate hikes.

For the average investor, this means policy-driven positive momentum is reinforcing gold’s role as a key portfolio diversifier. In a climate of ongoing global economic uncertainty and geopolitical tensions, gold’s price behavior underscores its core value as a wealth preservative, suggesting a timely opportunity for investors to reposition their portfolios to benefit from this rally.

Daily Chart

The daily chart of XAUUSD reveals a clear upward trend since late July, with prices climbing from approximately 4028 USD to the recent 4520 USD range. The 200-day moving average is trending upward and has acted as strong support. The Bollinger Bands show price breaking above the upper band, signaling strong bullish momentum. The MACD indicator is currently in a golden cross formation, confirming the continuation of the upward trend. Overall, the daily chart supports a long-term bullish stance.

1H Chart

The hourly chart over the past 3-5 days shows a pattern of oscillating upward movement, culminating in a recent breakout above the 4416 USD short-term resistance. Short-term moving averages (such as 20 and 50 MAs) are aligned bullishly, with price sustaining above these averages. Bollinger Bands have expanded following a squeeze, indicating increased volatility. Significantly, the latest candlestick formed a bullish engulfing pattern, suggesting potential continued upward movement over the next 24 hours.

Technical Trend:  Decisively bullish trend

Technical analysis indicates that XAUUSD is in a strong bullish phase. The daily MACD golden cross and Bollinger Band breakout confirm upward momentum. On the hourly chart, a recent bullish engulfing candlestick provides a strong short-term buy signal. Rising volume supports the breakout above prior highs. Traders should watch resistance near 4520 USD, where a break could open the path to 4600 USD. Conversely, a pullback to 4400 USD would represent a healthy correction.

Today’s economic calendar offers limited direct events impacting XAUUSD. The European Central Bank Chairman’s speeches at 09:10 and 12:15 GMT+1 may cause volatility in EUR and USD, indirectly affecting gold prices. Additionally, the US FOMC Minutes release at 20:00 GMT+1 (early morning HKT) could reveal insights on future rate policy, potentially impacting safe-haven demand for gold. Overall, traders should monitor these events for short-term market reactions.

Resistance & Support

Run Live XAUUSD Analysis

The above financial market data, quotes, charts, statistics, exchange rates, news, research, analysis, buy or sell ratings, financial education, and other information are for reference only. Before making any trades based on this information, you should consult independent professional advice to verify pricing data or obtain more detailed market information. 1uptick.com should not be regarded as soliciting any subscriber or visitor to execute any trade. You are solely responsible for all of your own trading decisions.