Gold's behaviour is interesting here. Despite geopolitical tensions and risk-off sentiment, it has struggled to attract safe-haven flows, suggesting that higher real yields and a stronger dollar are currently the dominant forces.
The $4,000 level is both a psychological and technical support. If it holds, sentiment could improve quickly and trigger a relief rally. If it breaks decisively, momentum traders may push prices lower before long-term buyers step in.
Personally, I prefer gradual scaling rather than trying to call the exact bottom. A staggered approach reduces the risk of buying too early while ensuring some exposure if support holds. Waiting for a confirmed breakdown may provide a better entry price, but it also risks missing a sharp rebound.
The key question: is gold's weakness a temporary response to rate expectations, or is the market signalling that the safe-haven trade is losing strength for now?
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