Gold's $4,600 ceiling must break to confirm end of 2026 correction

Gold has rallied 8% since the start of August, pushing back into a $4,300 to $4,600 resistance zone that formed from nine months of highs and lows between October and June. The move comes after a correction that began in January and a bounce off the $3,900 to $4,100 support area. The metal has also cleared the downtrend line that capped gains through much of the 2026 selloff.

Jesse Colombo, a precious metals analyst published by King World News, said the price action is encouraging but not yet conclusive.

"I would like to see gold completely push above its $4,300 to $4,600 resistance zone for even greater assurance that the correction is indeed behind us," Colombo said.

He noted that the 8% rally since Aug. 1 left gold "a bit extended" and recommended caution until a shallow pullback or consolidation developed. That consolidation began in the last few days of the week, Colombo said, and likely needs more time before the next leg higher.

"This is all good and healthy behavior that is setting the stage for the next leg of the rally," he said. "A breakout from this consolidation should provide another solid opportunity to get on board."

Colombo views the January-to-August correction as a pause within a longer bull market that started in April 2024. He said that cycle has "at least another eight years to run based on historical cycles" and that the current price action is not the start of a new bear market.

The metal tested the $4,300 level intraweek before pulling back. A close above $4,600 would break the highest boundary of the zone and mark a new high for the recovery leg. Below $4,100, the support that held the mid-August low, the correction pattern would resume.

Colombo said he will notify subscribers when the consolidation resolves and a breakout entry appears.