The current rally has raised the question of whether this is the right time to buy gold. In the positive case, if the Fed begins cutting rates, real yields are likely to fall further, which has historically supported gold prices. A weaker dollar would also enhance gold’s appeal for global investors. On the other hand, there are risks in the short term. Any profit-taking after the recent rally or a sudden shift in Fed communication could lead to volatility. Stronger-than-expected US economic data could also reduce the chances of aggressive rate cuts, which may cause a temporary pullback in gold.
For long-term investors, the macroeconomic backdrop remains supportive, and gold can be accumulated gradually, particularly on price dips. For short-term traders, it may be prudent to watch resistance levels closely and manage risk carefully.
Overall, the uptrend in gold appears intact and expectations of Fed rate cuts strengthen the outlook for further gains. While chasing the rally may carry near-term risks, buying on declines could be a more balanced strategy.