Gold showed a strong signal in the global market on Wednesday, August 5th, with spot gold prices surging over 4% in a single day. The precious metal broke through the near-seven-week high, hitting an intraday peak of $4,267.55 per ounce before closing at $4,246.79. This move not only breached the technical support of the 50-day moving average but also marked the largest single-day gain since February.

This strong rebound was driven by lower U.S. Treasury yields, a significant weakening of the U.S. dollar, and market optimism surrounding the Iran nuclear talks and the resumption of shipping through the Strait of Hormuz. After a prolonged correction that saw gold decline about 24% from its January all-time high of $5,595 and fall roughly 19% since the Iran war broke out, the metal appears to be attracting fresh capital inflows.

Independent precious metals trader Tai Wong stated that with the likelihood of a rate hike dropping significantly since last week, early-positioned investors are returning to the precious metals market. The sharp decline in the U.S. dollar provided direct support, while the "pause" signal in the Iran situation offered additional assistance.

From a technical perspective, gold's daily and 4-hour charts show a strong vertical rally, completely breaking free from the previous consolidation range, with bullish momentum erupting in a concentrated manner. For intraday trading, if the price shows signs of pulling back below the early high of $4,305, a short position can be considered. If the price firmly holds above $4,305, a continuation of the rally is expected, and a short position can be attempted near the $4,400 resistance level. On the downside, a long position can be taken near the $4,246 to $4,180 support zone.

Sprott Physical Gold & Silver Trust and Sprott Physical Gold Trust are also gaining attention as gold prices rise. This article is for reference only and does not constitute investment advice. Investors should bear the risks of their own actions.