Gold surged to a fresh record high above $5,100 per ounce, while silver quietly added another 5% to trade around $110 today. The latest leg higher has reinforced the bullish gold forecast, with continued US dollar weakness and signs of yen intervention combining with a broader loss of confidence in fiat currencies, which has long underpinned gold’s appeal. Add in persistent global policy uncertainty, and it is hardly surprising that capital keeps flowing into hard assets. Indeed, the list of supportive factors behind this rally feels almost endless. Even so, it is fair to say that even some of the more bullish traders may be starting to question how much further this move can stretch in the near term. At these extremely extended levels, profit-taking must be tempting. Yet prices continue to refuse to roll over, and that, in itself, is becoming part of the story. Despite some easing in obvious geopolitical risk, investors’ appetite for gold and silver remain seemingly strong.
Can the rally extend further?
Interestingly, Trump’s U-turn on tariffs last week should, in theory, have dulled the appeal of safe-haven assets. Instead, gold barely reacted and actually strengthened further, reinforcing the idea that this rally is being driven by deeper, more structural forces rather than just short-term headlines.
On the surface, part of the explanation is fairly simple. The US dollar has come under sustained pressure, and that naturally provides a tailwind for gold. A weaker dollar makes the metal cheaper for non-US buyers, and that dynamic is clearly playing out.
However, this does not feel like a pure FX translation story. Gold priced in euros and pounds has also been trending higher, which suggests demand is broader and more genuine than just currency effects alone.
Can the dollar make a comeback?
That said, the dollar narrative is still doing plenty of work in the background. The greenback slipped following last week’s geopolitical fragmentation, and suspected Japanese intervention in USD/JPY has added pressure. Markets are increasingly convinced that Japanese authorities stepped in when USD/JPY pushed beyond 159. More intriguingly, reports that the Federal Reserve was “rate checking” banks in New York around the London close hint that this may not have been Japan acting in isolation. Potential coordinated Japan–US intervention is a much stronger signal than Tokyo selling dollars on its own.
Bullish momentum is a major factor behind recent gains
Momentum is also playing a central role. This remains a powerful uptrend, with trend-following behaviour firmly in control. Traders are buying pullbacks rather than fading rallies, and as long as that mindset persists, it is difficult to argue against higher prices in the near term, even if there is a short term disconnect between fundamentals and reality.
From a psychological perspective, the $5,000 level has now been convincingly broken. It sounded ambitious only a few sessions ago, much like $4,000 did not too long back. When strong technical momentum meets a weakening dollar and rising unease in global bond markets, those big round numbers suddenly start to look far less unrealistic.
Still, it is worth keeping one eye on the macro backdrop. Real yields, growth expectations and inflation dynamics have not disappeared, and at some point they will reassert themselves. When they do, gold may struggle to justify these lofty levels without a renewed systemic risk narrative to lean on.
Technical gold forecast: Key levels to watch
For now, though, the path of least resistance still looks higher. The next technical target sits around $5,182, which marks the 261.8% Fibonacci extension of the last major downswing from October. Just beyond that, the next round handle at $5,200 comes into view.
On the downside, initial support now sits at $5,000 on XAUUSD, with round levels at $4,900 and $4,800 also worth watching. Further out, more meaningful long-term support is seen around the $4,500–$4,550 zone.
As long as the dollar stays under pressure, central banks remain net buyers of gold, and governments continue flirting with FX intervention, it is difficult to see what really forces this market to roll over, aside from a wave of profit-taking. For now, the gold forecast still constructive but for many traders it is likely that the upside objectives have now been met.
-- Written by Fawad Razaqzada, Market Analyst
Follow Fawad on Twitter @Trader_F_R
