Last week, gold extended its historic rally once again. As trade tensions between the U.S. and China escalated and the Fed signaled a possible policy shift, the yellow metal regained strong momentum, pushing to new highs around $3,380, gaining over 500 pips from the week’s opening.
What’s most notable is that despite these record levels, market sentiment remains clearly optimistic — and in my view, that optimism is well-founded.
We’re seeing capital flow into gold from all directions: speculators, institutional funds, and even central banks. In today’s uncertain climate, gold isn’t just an option — it’s the market’s natural reaction to instability.
This isn’t only about tariffs or geopolitics. What truly fuels the move is the Fed’s increasingly dovish tone. And every time monetary policy softens, gold steps back into the spotlight as a defensive anchor.
Unless we see a major surprise — such as a sudden trade resolution or a sharp policy pivot — there’s little reason to expect the uptrend to end here. In fact, any short-term correction could serve as a healthier entry point rather than a reversal signal.
So the real question right now isn’t “Has gold gone too far?”
It’s: “Are we ready for a much longer bullish cycle?”
What’s most notable is that despite these record levels, market sentiment remains clearly optimistic — and in my view, that optimism is well-founded.
We’re seeing capital flow into gold from all directions: speculators, institutional funds, and even central banks. In today’s uncertain climate, gold isn’t just an option — it’s the market’s natural reaction to instability.
This isn’t only about tariffs or geopolitics. What truly fuels the move is the Fed’s increasingly dovish tone. And every time monetary policy softens, gold steps back into the spotlight as a defensive anchor.
Unless we see a major surprise — such as a sudden trade resolution or a sharp policy pivot — there’s little reason to expect the uptrend to end here. In fact, any short-term correction could serve as a healthier entry point rather than a reversal signal.
So the real question right now isn’t “Has gold gone too far?”
It’s: “Are we ready for a much longer bullish cycle?”
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.