Gold can retest the ATH

Gold has been performing well since the end of 2024 until now: having bounced off the support of $2600, it’s showing a substantial internal demand. Usually, rising US dollar and yields of bonds pressure Gold prices, but not for now: for the last month, it was moving in sync with the US dollar.

The sentiment for the US dollar had stabilized, as traders' discount interest rate kept at the same level until summer of 2025, with yields of 30-year bonds bouncing off the 5% watermark.

As geopolitical tensions have stepped back in the agenda, Gold is driven by a flight-to-safety mechanism, when markets tend to gravitate towards safer assets: that explains correlation between Gold and the US dollar, and, moderately, Japanese Yen.

Technically, the price of XAUUSD is moving within the rising price swing, having almost reached the all-time high of October 2024. That might be a problematic area, resulting in a profit taking (white scenario), or more aggressive development to the new peak. Overall market condition is bullish in the short-term, however in the medium-term perspective, it may set a new peak and reverse back to price $2700 area.

Don't forget - this is just the idea, always do your own reserch and never forget to manage your risk!