Accumulate gold up to $5,200 per ounce

Gold is poised for modest gains in the days ahead, with bulls setting their sights on a decisive move above the psychologically important $5,200 threshold. After a week of sharp price swings, the market has shifted into a holding pattern—one where simmering geopolitical tensions are drowning out the usual noise from a resilient dollar. The precious metal is now finding solid footing beneath it, thanks in no small part to Washington's latest trade gambit. The Trump administration's announcement of new global tariffs ranging from 10% to 15% has burnished gold's safe-haven luster, reminding investors why they hold bullion in the first place. Add to that the fragility of the Geneva nuclear talks and the murky outlook for US trade policy, and it's no wonder investors are clinging to their metal positions with both hands.

The ceiling currently hovering near $5,250 can be traced back to the most recent batch of American economic data. January's CPI reading was 2.4%, while the labor market appeared tight. Together, they have pushed expectations for an imminent Federal Reserve (Fed) rate cut further into the distance.

However, if inflation typically favors gold, why is 2.4% throwing cold water on the rally?

It all comes down to market logic. Traditionally, bullion has thrived as an inflation hedge. But today's calculus is totally different. The regulator's target CPI is 2%, so the current 2.4% figure is proving to be stickier than anyone would like. For traders, it is a flashing signal: the Fed will keep rates higher for longer.

And here's the problem—gold doesn't pay you to hold it. It offers no coupon or dividend. In an environment of elevated US borrowing costs, where Treasuries and deposits offer a cushy 4.5%–5% yearly return, parking money in yield-bearing assets starts to look a lot more attractive. The further rate cuts get pushed down the road, the harder it becomes for the metal to compete.

There is also the dollar dynamic to consider. High rates make the greenback stronger and scarcer on the global stage, and history shows that a climbing currency tends to keep bullion in check.

Still, with so many uncertainties swirling, the dollar's strength is taking a backseat—and that's good news for the precious metal.

The ultimate recommendation is to buy gold. Lock in profits at $5,200. Place Stop Loss at $5,170.

Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.