Gold remains firmly supported by a brightening market mood, building on its recovery from the 7-week low of $4,454 reached early Thursday. With confidence on the rise, buyers are now setting their sights on the $4,600 level.
Asian equities are gaining traction, lifted by renewed hopes for a rapid US-Iran peace agreement. Add to that a blockbuster earnings report from AI bellwether NVIDIA and the suspension of the Samsung Electronics strike, and you have a recipe for surging chipmaker stocks and a clear lift for investor sentiment.
This wave of optimism is pulling two important levers. First, it is reducing the safe-haven appeal of the US dollar. Second, it is keeping oil prices and inflation concerns in check. This one-two punch is helping gold sustain its recovery run.
But the path ahead is not without hurdles. Whether bullion can break cleanly above $4,600 remains an open question, especially with the Federal Reserve (Fed) standing guard. Minutes from the April policy meeting, released Wednesday, revealed that most regulatory officials believe "some tightening will likely be necessary" if inflation stays above the 2% target. That is a clear warning light for any asset that thrives on easier conditions.
The ultimate recommendation is to buy gold. Lock in profits at $4,640. Place Stop Loss at $4,470.
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.
This content is for informational purposes only and is not intended to be investing advice.
