Is the $5,000/oz Gold milestone feasible?
1. Three main drivers pushing Gold to unprecedented growth:
Extremely tense geopolitics: The new crisis between the US and EU regarding Greenland has triggered a flight of capital from risky assets to the "safe haven" of gold.
Crisis of confidence in the Fed: Doubts about the independence of the US Federal Reserve (Fed) are driving investors away from the USD to seek "real money" which is gold.
The thirst of Central Banks: The trend of de-dollarization continues, with countries accumulating gold at record levels to serve as strategic reserve assets.
2. Forecast: Will Gold $XAU exceed $5,000?
From my perspective: there is a very high probability that Gold will surpass $5000/oz in Q1 this year.
In technical terms: Gold has entered the "Price Discovery" phase. The $5,000 mark is a very strong psychological resistance level. If it surpasses this level, gold could shoot straight up to $5,500 - $6,000 by the end of the year.
🚩 Advice for your portfolio:
Be cautious of risk: although the upward trend is clear, at the $4,800 price level, the RSI has entered the "overbought" zone. The market is very likely to experience corrections of about 5-10% to shake off leveraged positions before breaking through the $5,000 mark.
If you do not have gold: Do not FOMO "go all in" at this peak price. Consider DCA (dollar-cost averaging) if gold corrects to the $4,500 - $4,600 range.
If you are holding gold: Continue to hold. The $5,000 mark is a reasonable take-profit target to optimize profits.
Note: This analysis is based on current market data and is not investment advice.
