Purchasing gold with $4,790 in view during consolidation following recent correction

On Thursday morning, gold consolidated within a flat trend on the daily chart, following its recent surge and subsequent correction. Prices are now settling firmly near $4,700, balancing between bulls and bears, with no inclination toward either side.

The Chaikin Oscillator remains in negative territory, pointing to ongoing selling pressure. At the same time, the indicator is approaching its bottom level, attempting to reverse upward. This is a first sign of waning bearish initiative. However, other technical factors have not yet provided enough evidence to confirm this dynamic.

The Stochastic Oscillator points to a bearish crossover of its lines near the neutral zone. %K has swiftly slid below %D, suggesting short-term selling momentum. What does this information tell us? The current correction could continue, or at the very least, we will see further consolidation in the coming sessions. But keep in mind that the Stochastic did not hit extreme levels, leaving the precious metal some room to maneuver.

The Alligator Indicator adds the final piece to the overall technical picture, reflecting a textbook example of market slumber, with prices sitting between the dynamic resistance level at $4,705.56 and the support range of $4,648–$4,650. When the indicator lines cross, it signals low volatility and a buildup of energy ahead of a potential breakout. The direction of this move will determine the future trend.

Fundamentally, gold is weighed down by rising expectations of the Federal Reserve’s (Fed) hawkish rhetoric and higher Treasury yields, which increase the opportunity cost of holding the metal. On the flip side, several factors are on the bullion's side, underpinning its safe-haven status: stubborn US inflation and geopolitical jitters in the Middle East. However, India’s decision to raise import duties on gold to 15% tips the scales against the asset. This could temporarily reduce official demand for the physical metal in one of the key consumer markets.

Consider the following trading strategy:

Buy gold when it consolidates above $4,700. Place Take profit at $4,790 and Stop loss at $4,620.

This forecast remains relevant between May 14 and May 21, 2026.