Gold retreats from $4,700 as profit-taking trims record rally

COMEX gold eased from the $4,700 level on Aug. 24, trading near $4,660 an ounce after profit-taking trimmed a rally to record highs.

"Gold prices are showing a positive bias," Manav Modi, senior analyst at Motilal Oswal Financial Services, said, describing the pullback as a pause within an uptrend supported by central bank buying and rate-cut expectations.

The decline followed a sharp rally that pushed bullion above $4,700, with short-term traders taking profits and U.S. Treasury yields ticking higher. Gold still gained more than 5 percent last week, and the dollar fell to a three-month low as the U.S. Treasury expanded its long-dated bond buyback program to contain rising long-term yields. U.S. public debt has exceeded $40 trillion, raising concerns over fiscal sustainability.

Immediate support is at $4,650, followed by the psychological $4,600 mark; a break below could open a correction toward $4,500. On the upside, a decisive close above $4,700 would signal resumption of the uptrend, with $4,770 in view. Gold-backed ETFs recorded their largest daily inflow since September 2025, extending a five-week streak of net inflows, according to fund data.

MCX Gold Breaks Above Rs 157,500-158,000

On the MCX, gold traded near Rs 163,000, having broken above the Rs 157,500-158,000 resistance zone. A sustained move above Rs 163,000 could open the path toward Rs 166,000-168,000, while any correction toward Rs 158,000-160,000 is likely to attract buying interest, Modi said. Resistance levels stand at Rs 164,500, Rs 166,500, and Rs 168,000-170,000, with support at Rs 160,000, Rs 158,000, and Rs 155,000.

ETF Inflows, Dollar Weakness Underpin Bullion

Investment demand strengthened considerably during the week, with gold-backed ETFs extending a five-week streak of net inflows, reflecting renewed institutional interest. Central banks continued to diversify reserves away from the dollar, particularly as elevated geopolitical risks and persistent inflation concerns remain. The dollar's slide to a three-month low increased gold's appeal to overseas investors, while real yields remain low across major economies, keeping the metal's opportunity cost subdued. Gold at $4,660 an ounce, up 0.85 percent on the day, sits roughly 1 percent below the record high set last week, according to CryptoRank data.

Market participants will monitor upcoming U.S. economic data and Federal Reserve commentary for direction, with the next event expected around the August jobs report.

This article is for informational purposes only and does not constitute investment advice.