Will the gold price continue to rise? This question has been asked a lot recently.

First, the conclusion: the long-term trend is fine, but in the short term, it definitely needs to take a breather. Chasing highs now? Then basically just wait to be cut like leeks.

This year, gold has skyrocketed by over 60%, directly breaking through the $4000 barrier. Goldman Sachs conducted a survey, and over 70% of institutions are calling for a rise, with an even more exaggerated 36% believing it could reach $5000 next year. This wave of market movement is not without reason — central banks around the world have been buying relentlessly to support the market, and the expectations for interest rate cuts from the Federal Reserve have weakened, naturally lowering the cost of holding gold. Coupled with unstable geopolitical situations and an unclear economic outlook, these three forces combined make gold a solid hard currency right now.

However, the short-term overbought signals have become quite obvious. The RSI indicator is about to hit the ceiling, and there are reports of ceasefire negotiations in the Russia-Ukraine situation, cooling off the risk aversion sentiment. A pullback to around $4000 is very likely.

My view is very simple: gold is no longer just a safe-haven asset; it is now a long-term strategic asset. However, the rise has never been a straight line upwards; there always needs to be a pause in between.

The smart way to play is to position yourself during a pullback, rather than catching the falling knife at a high point like a goalkeeper. What about you? Are you planning to enter during the pullback, or do you think it can break 5000 directly? See you in the comments.