The bull market is not over yet, gold is heading towards 3400Sentiment Misjudgment:
A significant number of market participants misread the price action, anticipating a technical pullback based on historical precedent. However, gold defied expectations, breaking to fresh all-time highs, indicating a departure from traditional market behavior.
Recent Price Performance:
Gold has rallied from $2970 to $3380, registering a $400+ gain, now approaching the critical psychological barrier at $3400, supported by strong momentum.
Macro Drivers:
The global economy is entering a stagflationary phase, with persistently low real interest rates increasing gold’s appeal as an inflation hedge.
Geopolitical tensions are escalating, heightening demand for safe-haven assets.
The U.S. Federal Reserve’s independence is under pressure amid political interference, reinforcing expectations for a policy pivot.
A shift away from the "cash is king" doctrine is emerging, with gold reasserting its role as a store of value in a global rebalancing of capital.
Technical Outlook:
Gold maintains a structurally bullish setup, with key intraday supports at $3365 and $3355. Sustained trading above this zone increases the probability of a breakout toward $3390–$3395, with further upside potential in the U.S. session.
Strategic Recommendations:
Avoid holding long-term short positions against the prevailing trend.
Treat any corrective pullbacks as opportunities for accumulation within a broader bullish cycle.
Use $3360 as the key pivot level, maintaining a buy-on-dip strategy as long as it holds.
Stay disciplined with risk management and be a "friend of the trend"—let time compound the value of correct positioning.
