Holding onto gold for long term

Despite extreme volatility, gold’s long-term outlook remains positive. Its recent pullback was one of the steepest in decades, driven primarily by the forced liquidation of overleveraged positions and increased margin requirements.

Market sentiment is mixed, with short-term investors panicking and long-term ones filling their pockets with cheaper gold. Current prices present a favorable entry point, especially since structural tailwinds remain intact. The precious metal may see further declines in the near term but is poised to recover and advance over time, underpinned by rising demand. Major financial institutions like JPMorgan and Deutsche Bank forecast that bullion could hit the $6,000–$6,300 range by the end of 2026.

It is important to note that gold continues to receive strong support from global central banks that aim to diversify their reserves, reducing ties with the US dollar and maneuvering geopolitical risks. Investors still view the precious metal as a primary safe haven and reliable hedge against persistent inflation and worldwide instability.

We are currently witnessing a fundamental shift of capital from paper assets to tangible ones. This creates sustained, structural demand for precious metals in the long run, with gold and silver being the best alternatives to inflation-sensitive cash and a great protection amid global uncertainty. Digital assets, including cryptocurrencies, don’t stand a chance against safe havens as well, as they are either correlated with traditional markets or are subject to significant technical risks.

The overall recommendation is to buy gold on a long-term horizon, with an optimal entry zone around $4,700. Profits should be taken at $5,800. Stop Loss could be set at $3,800.

Always size the position so that your potential loss (protected by a Stop Loss) is no more than 1% of your account balance. If you can't open a position that meets such a risk criterion, it's safer to skip this trade and wait for a better, lower-risk opportunity.