Golden Recovery in Gold

Gold is showing signs of a stronger recovery after rebounding from the low-$4,000 area, supported by broader weakness in the U.S. dollar.

One of the key catalysts behind the sharp move in gold and silver on Wednesday was the U.S. Treasury Departments announcement that it would double its long-dated bond buybacks to at least $4 billion per operation.

The announcement pushed Treasury yields lower and weakened the U.S. dollar, triggering a strong reaction across precious metals. Investors interpreted the move as potentially reviving the “dollar debasement trade,” particularly against the backdrop of elevated U.S. government debt and growing sensitivity to changes in Treasury market liquidity.

From both a fundamental and technical perspective, the picture for gold now looks significantly more constructive than it did at the beginning of the month. Dollar weakness, softer yields and renewed demand for hard assets are providing additional support to the recovery.

Key Levels to Watch Today

Resistance:

• 4,570–4,590 – first important resistance zone

• 4,600–4,630 – next major upside target and resistance area

Support:

• 4,490–4,515 – currently forming a firm near-term support zone

As long as gold remains above the 4,490–4,515 area, the short-term technical structure remains constructive, with the market potentially preparing for another attempt toward the 4,600+ region.

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