XAUUSD BUY Signal — $4605 Setup for 22 Aug 2026

What a wild day to be watching the gold market. Today is Saturday, August 22, 2026, and gold is sitting at a massive $4604.82. It has jumped up by over $107.80 since yesterday. If you are tracking local prices in India or Pakistan, you know this means local jewellery prices are likely going through the roof right now.

I was looking at the charts this morning with my cup of tea, and the upward momentum is incredibly strong. It looks like buyers are completely in control. Let's look at how we can trade this safely without chasing the market too high.

How Yesterday's Signal Went

Let's be completely honest about yesterday's setup. We set up a BUY order at $4460.00, but the market had other plans. Gold was already flying high and never came back down to tap our entry level. The lowest price it hit was $4620.50.

Because the price never dropped to $4460.00, our trade was never triggered. It was a missed opportunity, but that is much better than losing money. We stay patient and wait for the next right moment.

Today's Trade Setup

Direction: BUY (we expect price to go up)

Entry: $4590.00 (where we buy in)

Stop Loss: $4572.00 (safety net — closes the trade to prevent bigger losses)

Take Profit 1: $4617.00 (first target where we book some profit)

Take Profit 2: $4635.00 (second target for more profit)

Take Profit 3: $4650.00 (final target if the trend continues)

Timeframe: H4 (4-hour candles)

Risk:Reward: 1:2.5 (risking $1 to make $2.50)

Why This Setup

Gold is in a strong uptrend right now. When the market moves up this fast, we do not want to buy at the very top. Instead, we wait for a pullback. A pullback is a temporary drop in price before the main upward trend continues.

I have placed our entry at $4590.00. This level is close to a key support. Support is a price level where gold usually stops falling, like a solid floor holding you up. If gold dips slightly to test this floor, we can jump in at a bargain price.

The overall sentiment is very bullish. Bullish means prices are expected to rise. With global demand increasing, traders in Dubai and Mumbai are buying up physical gold, which helps support these high levels.

What Could Go Wrong

No trade is 100% safe. If gold drops below our support level of $4590.00 and keeps falling past $4572.00, this trade is invalidated. Invalidation means our idea was wrong, and we must get out.

A sudden drop could happen if there is unexpected economic news or if big institutional traders decide to take profits. That is why we always use a Stop Loss to protect our hard-earned capital.

Bottom Line

We are waiting for a small dip to $4590.00 before buying. If the price just keeps climbing without hitting our entry, we pass and wait for tomorrow. Do not chase the market.

Written by XAUUSDTips Team. Not financial advice. Trade at your own risk.