Gold has no intrinsic growth potential. It is all about supply and demand. The price action is all speculative with demand outstripping supply with no real fundamentals to support the frenzy rise.
So, it can swing either way depending on how policies pan out.
Based on the latest inflation data and strong labour market, rate cuts seem unlikely for now. As long as rate cuts remain steady, I believe the bubble for gold will pop. Of course, it is important for the uncertainties to remain steady or reduced as gold has always been as a safe haven in such times.
The next few months will reveal what is going to happen to gold. I don’t think in the short term gold will be able to defend the $5000 level as many would be rushing to cash out to secure their profits. It is always better to make less than not make anything. One can always buy back later if one wants it in their portfolio but I do think gold will slip back close to historical levels.
CME Relaxes Margins: Will "Gold Rush" Comeback?
Effective after the close on March 6, 2026, the CME Group has slashed initial margin requirements for Gold (from 9% to 7%) and Silver (from 18% to 14%). This move signals an end to a relentless cycle of six consecutive margin hikes that aimed to curb the "volatility" in early 2026.
The fundamental demand remains institutionalized: the World Gold Council reports a massive $5.3 billion net inflow into gold ETFs in February, 9 consecutive month of growth.
Will margin cut invite a fresh wave of leveraged speculators?
Will gold start a sustained rebound?
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