Gold (XAU/USD) prices have continued their strong upward movement, setting a new intraday record high of $3,720 during the Asian trading session on Monday, September 22. This recent surge follows a brief corrective period last week, with technical indicators suggesting that the short-term bullish momentum for the precious metal remains strong.
The price action builds on a previous all-time high of $3,707 reached on September 17. Analysts are now closely watching key support and resistance levels to determine if the current rally has enough strength to push into new territory, with the next significant target identified around the $3,750 mark.
Key Takeaways
- Gold reached a new intraday all-time high of $3,720 on September 22, 2025.
- The short-term bullish trend remains intact, with a key pivotal support level now identified at $3,660.
- A continued downtrend in U.S. 10-year real Treasury yields is providing a supportive environment for gold prices.
- Potential near-term resistance targets are projected at $3,750 and $3,776.
- A break below the $3,660 support could signal a deeper corrective phase for the precious metal.
Gold Reaches New All-Time High Amid Bullish Momentum
The price of gold has demonstrated significant strength in recent trading sessions. On Wednesday, September 17, the metal surged to a record high of $3,707, driven by market reactions to the latest U.S. Federal Open Market Committee (FOMC) announcements.
Following this peak, gold experienced a modest and temporary pullback. The price declined by 2.2% to an intraday low of $3,628 on Thursday, September 18. This correction coincided with a short-lived rebound in the U.S. dollar.
However, the decline was contained above the crucial short-term support level of $3,600. The price quickly found its footing and resumed its upward trajectory, culminating in another record high of $3,720 on Monday morning. This represents a 0.9% gain during the Asian session, bringing the price just shy of the previously identified resistance at $3,725.
Record-Breaking Performance
Gold has now set two new all-time intraday highs in less than a week, first at $3,707 and subsequently at $3,720, highlighting the powerful bullish sentiment currently driving the market.
Technical Indicators Support Further Gains
Several technical factors support the continuation of the current bullish trend for gold. The recent 2.2% price correction found strong support at the lower boundary of a minor ascending channel that has been forming since late August.
This channel's lower boundary, now situated around $3,660, is considered a key short-term pivotal support level. As long as the price remains above this mark, the outlook for a bullish acceleration remains positive.
Furthermore, the hourly Relative Strength Index (RSI), a popular momentum indicator, has entered its overbought zone by moving above the 70 level. While this can sometimes signal an impending reversal, there is currently no bearish divergence. This condition suggests that the upward momentum is still robust and has not yet shown signs of exhaustion.
"The ability of gold to quickly recover from the post-FOMC dip and establish a new high indicates that buyers remain in firm control. The price action above the ascending channel support at $3,660 is a constructive sign for the near-term outlook."
The Role of US Treasury Yields
The performance of U.S. government bonds is providing a significant tailwind for gold. Specifically, the trend in the 10-year U.S. Treasury real yield, which accounts for inflation, is a key driver.
Why Real Yields Matter for Gold
Gold is a non-income-bearing asset, meaning it does not pay interest or dividends. When real yields on government bonds fall, the opportunity cost of holding gold decreases. This makes gold a more attractive investment relative to bonds, often leading to increased demand and higher prices.
The medium-term downtrend for the 10-year real yield remains firmly in place. Despite a minor bounce from a support level of 1.66% last week, the yield has failed to break above key resistance levels.
According to market data, the 20-day and 50-day moving averages for the real yield are acting as resistance at 1.75% and 1.87%, respectively. As long as real yields remain capped below these levels, the macroeconomic environment is expected to continue to support gold prices.
Key Price Levels to Watch
For traders and investors, several critical price levels have been identified for the coming days. These levels can help gauge the strength of the current trend and identify potential turning points.
Key Support and Resistance
- Pivotal Support: $3,660. This level is critical for maintaining the current bullish acceleration. A sustained hold above this price is seen as positive.
- Intermediate Support: $3,620. If the pivotal support fails, this is the next level where buyers might emerge.
- Primary Resistance: $3,750. This is the next major upside target for the current rally.
- Secondary Resistance: $3,776. This level corresponds to a Fibonacci extension cluster, making it a significant technical target if the bullish momentum continues.
Potential Risks and Alternative Scenario
While the primary outlook for gold remains bullish, it is important to consider an alternative scenario. The bullish case would be invalidated if the price of gold breaks decisively below the key short-term support at $3,660.
Such a breakdown could trigger a more significant corrective decline. The first target in this scenario would be the intermediate support at $3,620. A failure to hold this level could open the door for a deeper pullback toward the $3,560 area, which aligns with the 20-day moving average.
Traders will be closely monitoring the price action around the $3,660 support to confirm whether the current upward trend will continue or if a period of consolidation or correction is imminent.
