Late last week, gold prices attempted to correct. However, sellers could only push them down to $3,950 and the line of the monthly ascending channel on the 4-hour timeframe. The metal’s pullback exhausted itself at this level, and the rally has resumed. Soon after the start of Monday’s trading session, an all-time high was updated. Bulls might target $4,100 per ounce next.
Gold’s local correction last Thursday and early Friday helped to ease overbought conditions in technical indicators. The RSI has retreated to the neutral zone, creating an opportunity for another wave of growth. The MACD has already resumed its ascent, providing a signal to open long positions. The trend line, reinforced by the nearby 50-day moving average, acts as a key support for buyers.
The brief correction in gold was interrupted by Donald Trump, who announced a sharp increase in tariffs on goods from China as a response to restrictions on supplies of rare earth metals from the Asian country. Over the weekend, the US president softened his tone, but this did not stop investors from actively purchasing gold and silver. Tensions between the world’s two largest economies could remain high until a meeting between the US and Chinese leaders, scheduled for late October.
Meanwhile, investors’ attention is still focused on gold. ETF statistics confirmed this strong interest. The World Gold Council reported a record $17.3 billion invested in exchange-traded funds for gold in September. The result for the first nine months of this year has already exceeded the previous peak of 2020. HSBC analysts believe that the uptrend in the gold market will continue in the first half of 2026, with the price potentially reaching $4,400.
Consider the following trading strategy:
Buy gold at $4,030 and above. Take profit: $4,100. Stop loss: $3,980.
This content is for informational purposes only and is not intended to be investing advice.
