Gold Bulls Drive the Metal Towards $2900/oz.

The precious metal shows no weakness, as a new ATH at $2865 was established on February 5. Bulls are firmly at the helm, and it seems the nearest profit-taking might happen only after the $2900/oz. mark has been breached. 

#XAUUSD has left the month-long rising channel, breaking out and accelerating the climb with impressive momentum. For a medium-term and long-term strategy the only recommended action to take is to buy on (in the past weeks hardly ever occurring) pullbacks.

This course of action remains our advice until the risk-off sentiment persists. Recently, the White House rolled back the supposed “progress” the current administration has made in ending the conflict in Ukraine. Now, the U.S. says it is not ready to talk peace anymore. 

Furthermore, Donald Trump proposed to “take over Gaza” by introducing U.S. troops in the region, and permanently displace Palestinians from the Strip. The ambitious and far-fetched plan encountered obvious and mounting disapproval from Israel’s Arab neighbors.

In addition to that, Trump announced he is ready to pressure Iran as much as it is needed, to make the country’s oil exports drop to zero. This last one also caused a sharp rebound in #XBRUSD on tight supply concerns

It has not even been a month and Trump’s plan to “end all wars” seems not only unreachable but also unwanted in the first place.

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