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.

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.

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