Gold has been consolidating within the $5,100–$5,300 range for a while. Following a recent correction and a subsequent rebound from the channel’s lower limit, the price has begun to climb steadily. The current technical setup points to the metal’s further upside potential, with a target of $5,300.
Gold also has a few fundamental tailwinds on its side, confirming the uptrend’s strength. Let’s take a closer look at some of them:
1. Weaker dollar. The greenback has lost about 2% of its value against major global currencies since the start of this year.
2. Geopolitical tensions and trade uncertainty. Escalating geopolitical risks and ongoing tariff disputes have bolstered precious metals and other commodities. It's worth remembering that gold isn’t just an industrial asset; it is a reliable safe haven in turbulent times when
everything else is not. Therefore, traders tend to turn to bullion in murky market conditions.
3. Expectations of further Fed easing. The US initial jobless claims report—due February 26—is the talk of the town. If the actual figures exceed the predicted 217,000, three rate cuts by the US regulator before the end of 2026 are almost guaranteed, which would be favorable for gold.
4. Structural central bank demand. Institutional interest in bullion remains strong. This year, global central bank purchases could exceed 800 tons, adding further support to prices.
The final recommendation:
- Buy gold at current levels, targeting $5,300 within the next seven days.
- Set Stop Loss at $5,130.
This content is for informational purposes only and is not intended to be investing advice.
