Buy gold with $4,680 in sight as oil finds its footing

After a brutal sell-off earlier in the week, gold has stabilized at around $4,540 per ounce. What turned the tide? News of potential talks between the United States and Iran. Hopes for a breakthrough sent oil prices into retreat, took the edge off inflation fears, and lowered expectations of aggressive Federal Reserve (Fed) monetary tightening. This shift in tone has brought the precious metal back onto the radar. 

Just a few days ago, gold was caught up in a very different situation. A crippled Strait of Hormuz kept crude locked above $100 per barrel, pushed consumer inflation to multi-year highs, drove 10-year Treasury yields to their peak, and handed the American currency a powerful tailwind. All of that made holding bullion, which pays no interest, a costly bet, and it tumbled nearly 15% from its February record.

Now, however, the wind has turned. Tangible signs of an improving oil supply, such as tankers moving and bottlenecks easing, are draining the sting of the energy shock. This pulls a key pillar out from under the hawkish policy camp. 

The long-term demand for gold remains sturdy, supported by central bank purchases and safe-haven buying in a fragile global economy. That said, lackluster exchange-traded fund (ETF) flows suggest that big institutions are not yet ready to dive back in.

From a technical standpoint, the precious metal continues to trace a descending channel on the daily chart. Nevertheless, the current price dynamic is showing early signs of life near support. The Stochastic Indicator has turned up from oversold territory—a hint that bears are losing their grip on the market. Adding to the case, the Chaikin Oscillator is creeping higher, quietly signaling that sentiment is slowly improving and setting the stage for a corrective rebound. 

For those ready to make a move, pay attention to the trading plan down below: 

Buy gold at the current price. Place Take profit at $4,680. Set Stop loss at $4,445.

This forecast is valid from May 21 till May 28, 2026.