How to Navigate Gold Investments in the Current Context?

שלשום

In recent days, gold prices have seen a significant decline, currently at $2,630/ounce, down to $18. This reflects clear pressure from investors as they see that US inflation is not yet "hot" enough to expect an early interest rate cut from the Fed, although the core personal spending index has increased by 2.8% over the past 12 months. In correlation with strong economic indicators and current geopolitical sentiment, gold may no longer be the safe haven it has always been.

Looking at the chart, it is clear that gold prices are struggling to maintain the important support level at $2,640, which was clearly broken in the recent trading session. Technical analysis shows that gold is trading below both the 34 EMA and the 89 EMA, which suggests that the short-term downtrend could continue. However, this also opens the door for a price recovery if there are unexpected positive economic signals.

My personal short-term view is that gold prices may continue to be under downward pressure. Stronger-than-expected US economic data and no signs of a change in the Fed's monetary policy are the main factors that are putting pressure. However, in the long term, I remain optimistic about the value of gold as a safe investment, especially in the context of central banks around the world such as Poland and Hungary actively buying gold as a hedge against geopolitical uncertainties.