{
  "id": 3250109,
  "title": "Gold pauses near three-month high after sharp rally",
  "url": "https://urgent.news/2026/08/25/gold-pauses-near-three-month-high-after-sharp-rally",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-25T11:09:01.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/gold-pauses-near-three-month-high-after-sharp-rally-202608251109"
  },
  "original_language": "en",
  "account": "Gold paused near a three-month high after a steep rally earlier in the Asian session. Traders seemed to be taking profits following the recent surge, which had pushed the Relative Strength Index (RSI) into overbought territory. The price of gold (XAU/USD) was trading around $4,640, having touched an intraday low of $4,618. A slight recovery in the US Dollar (USD) appeared to be restraining demand for the USD-denominated metal. The US Dollar Index (DXY), which measures the Greenback's value against a basket of six major currencies, was around 99, down from its recent low of 98.56 last week. However, the downside could remain restricted as both the near-term economic and technical factors continue to favor gold buyers. According to TD Securities, the precious metals sector is benefiting from strong support from developments in the US bond market, particularly due to US Treasury Secretary Scott Bessent's intervention last week. This stepped-up Treasury buying could reach \"more than double to $8 billion between September 9 and November 4,\" potentially driving further interest in gold and silver. Additionally, strong inflows into Gold-backed exchange-traded funds (ETFs) have also helped bolster gold prices. Global Gold ETFs received net inflows of $3.52 billion, equivalent to 23.6 tonnes, with year-to-date inflows totaling $21.34 billion, or 116.1 tonnes, driven by substantial demand from Asia and Europe. Meanwhile, Middle East headlines remained a focal point, adding to market volatility despite a quiet US economic calendar. Iranian Finance Minister Ali Madanizadeh stated that Iran is prepared to counter US sanctions, following the US Treasury's \"Operation Economic Outcast,\" which aimed to cut off financial support for the Iranian government. While oil prices showed little reaction to the latest developments, they remained above pre-war levels, keeping energy-driven inflation risks alive and creating uncertainty around the Federal Reserve's (Fed) interest-rate trajectory. Looking ahead, traders were waiting for the US Personal Consumption Expenditures (PCE) Price Index on Wednesday and Fed Chairman Kevin Warsh's speech at the Jackson Hole Symposium on Friday. On the daily chart, XAU/USD continued to show a bullish bias, extending above the 50-day, 100-day, and 200-day Simple Moving Averages (SMAs), which were clustered between roughly $4,185 and $4,520. This cluster of SMAs indicated an entrenched uptrend, while the Relative Strength Index (14) stood near 71, signaling overbought conditions. The Moving Average Convergence Divergence (MACD) also remained positive, suggesting strong bullish momentum as the metal approached overhead supply. A break above $4,700 appeared to be the first major resistance, with $4,850 as the next target if buyers continued to push the price higher. Conversely, the immediate support lay at the 200-day SMA near $4,520, followed by the 100-day SMA around $4,379 and the 50-day SMA around $4,186. A deeper correction could face stronger support at the horizontal floor around $4,000. Gold has historically played a crucial role in human history as a store of value and medium of exchange. Today, apart from its aesthetic appeal and use in jewelry, gold is widely regarded as a safe-haven asset, providing a hedge against inflation and currency depreciation, as its value is not tied to any specific issuer or government. Central banks are among the largest holders of gold, often diversifying their reserves to bolster currency stability during turbulent times. In 2022, central banks added 1,136 tonnes of gold, worth around $70 billion, marking the highest purchase since records began. Many emerging economies, including China, India, and Turkey, have been rapidly increasing their gold reserves. Gold's price is inversely correlated with the US Dollar and US Treasuries, two major reserve assets. When the Dollar depreciates, gold tends to rise, enabling investors and central banks to diversify their holdings during uncertain times. Additionally, gold exhibits an inverse correlation with risk assets; a stock market rally usually weakens gold prices, while market sell-offs favor the precious metal.",
  "summary": "Gold (XAU/USD) loses ground on Tuesday after setting a fresh three-month high of $4,697 earlier in the Asian session. Traders appear to be booking some profits following the recent rally, which has pushed the Relative Strength Index (RSI) into overbought territory.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Yahoo Finance",
        "title": "Gold prices today, Tuesday, August 25, 2026: Gold hits 3-month high this morning",
        "url": "https://urgent.news/2026/08/25/gold-prices-today-tuesday-august-25-2026-gold-hits-3-month-high-this",
        "published": "2026-08-25T12:07:36.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}