Gold broke above its 200-day moving average and the 38.2% retracement of its 2026 trading range on August 21, extending a rally now pushed higher by US dollar weakness and rising concern over U.S. debt. Spot prices settled nearly 2% higher at $4,606.99/oz, while futures climbed through the session.
Buyers take control above $4,573.87
Gold climbed roughly $90 on the day, carrying the price above the 200-day moving average near $4,501.13 and through the 38.2% retracement of the 2026 trading range at $4,573.87. That level now serves as the closest risk-defining line for buyers, according to InvestingLive, with the 200-day average near $4,500 standing as the next support below it. The next major upside target sits at the 50% midpoint of the 2026 range at $4,768.93, a level that also aligns with swing highs from May 7 and May 12.
Spot price nears $4,607 as dollar softens
Spot gold rose nearly 2% on August 21 to settle at $4,606.99 per ounce, trading in a range between $4,567 and $4,613 during the session. Gold had surged from levels near $4,000 in late 2025, broken through $5,000 earlier this year, then spent several weeks consolidating between $4,500 and $4,600 before this month's move, which brought month-over-month gains of roughly 10% to 12% in August. A softening dollar makes bullion cheaper for foreign buyers, and shifting Fed expectations toward rate cuts or a pause lower the opportunity cost of holding a non-yielding asset, both of which have supported the move.
Debt concerns add to the bid
Gold futures for December delivery opened at $4,577 per troy ounce on Friday, up 0.1% from Thursday's close. The price then climbed to $4,633.90 per troy ounce by 9 a.m. ET. The move came as U.S. national debt hit a record $40 trillion this week, five months after eclipsing $39 trillion, up from $28.4 trillion in late 2021. Fast-rising debt erodes trust in the dollar and can push both investors and central banks toward gold as a safe haven.
Sources: InvestingLive, Crypto Briefing, Yahoo Personal Finance
Trading involves risk.
Risk Disclaimer
