Gold continues to shine in 2026, holding firmly to its long-term uptrend. A trio of tailwinds, namely central bank hoarding, expectations of Federal Reserve (Fed) interest rate cuts, and simmering geopolitical tensions, keep bullion in demand. After touching an all-time high at $5,600 and then tumbling sharply to $4,500, the precious metal has since recouped roughly half of those losses and is now trading steadily within the $5,000–$5,050 range.
The macro wind shifted favorably late last week. January's Consumer Price Index (CPI) in the US landed at 2.4% year-on-year—just below the 2.5% consensus—giving the national regulator more latitude to ease. With markets now pricing in two to three rate cuts before December, the opportunity cost of holding non-yielding bullion is shrinking. This tends to stimulate new buying interest.
From a technical standpoint, gold is poised for a breakout. An ascending triangle has formed on the four-hour (H4) and daily (D1) charts, with firm resistance at $5,100 and a rising support line tracing back to the January lows. Each test of that support has drawn a bullish bid, underscoring accumulation beneath the surface. A new move to resistance is likely, with a breakout above the ascending triangle targeting $5,500–$5,600 next.
In the meantime, momentum indicators are flashing green. The Relative Strength Index (RSI) has climbed back above 50 and is now hovering in the 50–55 range, while the MACD has flipped positive. Both readings are constructive and back up the probability of further gains.
Consider the plan for your trading down below:
— Buy gold at $4,900 with the $5,120 target in sight;
— Place Stop Loss at $4,850, just below the February 12 lows.
This content is for informational purposes only and is not intended to be investing advice.
