Can XAU/USD Reach New Highs in 2026 as Support Holds and China Buying Escalates

Gold surged above $4,600 as US Treasury intervention, renewed concerns over fiscal credibility, a weaker Dollar and China buying strengthen the case for bullion, although the rapid August rally could still face volatility from upcoming inflation data and the Federal Reserve.

Gold surged above $4,600 as US Treasury intervention, renewed concerns over fiscal credibility, a weaker Dollar and China buying strengthen the case for bullion, although the rapid August rally could still face volatility from upcoming inflation data and the Federal Reserve.

Gold Price Breaks Above $4,600
Gold prices accelerated sharply during the second half of August, with XAU/USD finishing Friday near $4,617 per ounce after reaching a high of $4,631.67.

The rally represents a remarkable reversal from late July, when gold had fallen below $4,000. Bullion has gained almost 14% during August, and the $4,000 area has now emerged as a major support zone.

That level was reinforced by the 20-month moving average, which helped attract buyers during the recent decline. The strong rebound from this technical area suggests that the broader bullish trend may be attempting to reassert itself after several months of weakness.