Are we ready for a new golden cycle?
Last week, the gold market maintained its historic bullish momentum. As trade tensions between the U.S. and China intensified and the Fed chairman signaled a possible shift in monetary policy, gold reacted immediately, reaching new highs and currently trading around 3,380 USD, up more than 500 pips since the start of the session.
What’s most interesting is that, despite being at record levels, market sentiment remains clearly optimistic - and, in my opinion, rightly so.
In practice, capital flows are entering gold from all fronts: speculators, institutional funds, and even central banks. And it's no coincidence. In an increasingly uncertain global context, gold remains the primary asset that the market turns to when seeking refuge.
It’s not just about fear of tariffs or geopolitical instability. The key point is that the Federal Reserve is already starting to soften its stance, hinting at a change in direction in its monetary policy. And whenever the Fed eases off the gas pedal, gold gains prominence as a defensive asset.
As long as no unexpected changes occur - such as a sudden trade agreement or a drastic shift in economic policy - I personally believe that the bullish trend of gold has no solid reasons to stop. Moreover, any correction could represent an even more attractive entry opportunity.
At this moment, the question is not "Has gold already risen too much?", but rather: "Are we prepared for a much longer bullish cycle?"