Gold: Buy Quickly While the Market Panics

XAU/USD

Key zone: 3,900.00 - 4,000.00

Buy: 4,000.00 (on a strong positive foundation); target 4,150-4,200; StopLoss 3,920.00

Sell: 3,900.00 (after a retest of the 3.950 level); target 3,750-3700; StopLoss 3,980.00

Investors continue to seek protection from economic and political uncertainty, maintaining strong demand for gold. The XAU/USD pair remains close to historic highs, and market behavior suggests that the $4,000 level is already perceived as conquered.

The current gold rally is fueled by a mix of economic panic, expectations of dovish monetary policy, tariff aggression from the Trump administration, and active central bank purchases — a defensive response to the first three factors. Political instability in France and Japan amplifies short-term risks and further boosts demand.

Growth is also supported by capital inflows into physically backed gold ETFs. According to the World Gold Council, global demand for gold funds increased to 587.8 tons between January and September, compared with an outflow of 6.8 tons for all of 2024.

On Monday, major “bears” awaited the release of China’s official gold reserve data, but nothing changed — Beijing continues to accumulate. As of the end of September, reserves stood at $253.84 million, up $29.45 million from August.

Short-term volatility in the gold market may rise as investors prepare for the upcoming corporate earnings season and macroeconomic reports. Sharp moves in U.S. Treasury yields or the resolution of the government shutdown could trigger profit-taking; however, most analysts view any pullbacks as temporary within the broader bullish trend.

At the same time, interest in silver continues to grow — supported not only by macroeconomic factors but also by strong industrial demand. An additional driver is the inclusion of silver in the U.S. list of strategically important minerals, which has sparked speculation about potential tariff measures.

As long as prices hold above $3,800, the market structure remains bullish. The breakout of $3,900 on XAU/USD gave buyers a new impulse. A strong consolidation above $4,000 will open the path to $4,100–4,200, where large options and pending buy orders are concentrated.

Even in the event of a correction, the fundamental outlook remains positive — gold continues to act as the key safe-haven asset. Short positions are only justified in the very short term and under strict risk management.

So we act wisely and avoid unnecessary risks.

Profits to y’all!