Gold Breaks Higher — But Is This Just the Beginning?Last week, OANDA:XAUUSD continued its record-breaking rally as trade tensions between the U.S. and China escalated and the Fed hinted at a potential policy pivot. The yellow metal quickly regained momentum, pushing to new highs around $3,380, gaining more than 500 pips from the week’s open.
What’s striking is that even at these historic levels, market sentiment remains overwhelmingly positive — and in my opinion, that optimism is completely justified.
Capital is flowing into gold from every direction — from speculators to central banks. And that’s no coincidence. In today’s uncertain global climate, the market’s first instinct is no longer to wait — it’s to seek safety. And gold continues to be the first asset that comes to mind.
This isn’t just about tariffs or geopolitical noise. The real driver is the Fed, which is now sending clear signals that its stance on monetary policy may soon soften. And every time the Fed slows down or takes a dovish tone, gold naturally rises to the top as a defensive play.
Unless we see a major surprise — like a sudden trade deal or a sharp policy shift — I don’t see any real reason for this uptrend to end. In fact, if we do get short-term pullbacks, they’re likely to offer even better buying opportunities.
So the real question isn’t “ Has gold gone too far? ”
It’s: “Are we ready for what could be a much longer bull cycle?”
