Investing in gold up to $5,230

Gold is nearing $5,100, as the hourly chart shows. Typically, if price compression occurs next to a specific level, there is a high probability of a breakout. While it is difficult to predict the duration of this consolidation, one thing is clear: the tighter the quotes cluster below the horizontal line, the higher the chance for an upward breach.

So far, bullion retains its privileged status as a premier safe-haven asset, underpinned by steady demand from global central banks and institutional investors.

Regulators continue to purchase gold at the record pace set in 2023–2024 (over 1,000 tons annually). They now account for about 25%–30% of total consumption, a significant boost from just 10%–15% a decade ago.

The People’s Bank of China (PBoC) and the Central Bank of India (CBI) are the most dedicated and active buyers. The Czech Republic and Poland are also bolstering their gold reserves to increase their share in portfolios to around 20%.

Bullion market dynamics shifted dramatically in 2025–2026. In contrast to 2024, when traders were rather cautious, capital is now flowing back to related ETFs. The catalyst was the Federal Reserve's (Fed) initiation of rate cuts, which compressed bond returns and allowed non-yielding gold to shine, capturing the attention of major players. Institutional investors use the precious metal to shield themselves from so-called “black swan” events like heightened geopolitical tensions and potential fluctuations in the stock market. The latter is currently doing really well, reaching near-record highs.

The ultimate recommendation is to buy gold. Lock in profits at $5,230. Place Stop Loss at $4,900.

The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.