ETO Markets Global Pulse: Gold Surges 1%, Tests $4,700

Market Review

According to ETO Markets monitoring, on August 24 (Monday), spot gold extended last weeks strong rally. Prices briefly touched USD 4,680.70 per ounce, the highest level in more than three months since May 14, before closing 1% higher at USD 4,652.48 per ounce. US gold futures for December delivery also rose 1.1% to USD 4,730.40 per ounce.

On August 25 (Tuesday) during early Asian trading, spot gold remained firm and briefly approached USD 4,680 per ounce, before meeting resistance ahead of the USD 4,700 psychological level. Since August, London spot gold has gained more than 13% and has posted three consecutive weekly gains.

Global Headlines

US Expands Iran Economic Sanctions

US Treasury Secretary Bessent announced a new package of economic sanctions against Iran, expanding secondary sanctions on entities and countries still doing business with Tehran. The Treasury said sanctions have been issued across five areas: digital assets, technology, gold, aviation, and shipping. Nearly 60 entities, individuals, and vessels were targeted.

Iran Vows Firmer Response Ahead

Mokhber, an adviser to Iran‘s Supreme Leader, said Iran’s response to US threats will be stronger than before. He said Washingtons hostile strategies over the past 47 years, including sanctions, war, and attempts to divide Iran, have failed to achieve their goals. Iran now has internal unity and deterrence capabilities in the Strait of Hormuz.

Trump Raises Canadian Tariffs Sharply

Trump said Canada has long “taken advantage” of US farmers and agricultural products through high tariffs, adding that the US runs a USD 60 billion trade deficit with Canada. He announced that from January 1, 2027, the US will raise tariffs on all Canadian cars, trucks, auto parts, and steel to 50%.

Bessent Offers No Debt Signal

US Treasury Secretary Bessent gave no fresh signal on changes to US debt management. Earlier reports suggested the Treasury may use part of its cash reserves to fund buybacks of high-yielding outstanding Treasury bonds. Bessent said the Treasury has “not even bought one bond yet” and will continue with its regular issuance plan.

Morgan Stanley Sees TGA Buybacks

Morgan Stanley rates strategist Martin Tobias said the US Treasury could draw USD 80 billion to USD 200 billion from the Treasury General Account held at the FED to support expanded Treasury buyback operations. As of August 20, the account balance stood at USD 935 billion.

ETO Markets Analyst View (Spot Gold)

Spot gold maintains a strong short-term upward structure. After breaking above the 200-day moving average last week, prices moved further above the USD 4,600 level and are now trading above key major moving averages. The 200-day moving average near USD 4,518 per ounce is an important support reference. If prices remain above this area, the short-term bullish structure may continue.

On the upside, USD 4,700 is the key near-term resistance level. A confirmed breakout above this level would shift focus to the mid-May high near USD 4,770, followed by the USD 4,890 to USD 4,900 area. If prices remain capped near USD 4,700, short-term profit-taking risk should be monitored. Initial support is seen near USD 4,600 and USD 4,518.

RSI has moved above 70 into overbought territory, showing that the short-term rally has been fast. Intraday volatility and pullback pressure may increase. However, before the broader fundamental trend clearly reverses, gold remains in a strong range.

Markets are currently pricing the escalation of US sanctions on Iran, Strait of Hormuz risks, USD movements, and pressure from US Treasury supply. Gold may continue to trade in a high-level volatile range in the short term.

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