Golden Week Tuesday saw a beautiful upward trend, with spot prices around $4495, just a hair away from the $4500 psychological threshold.

The driving force behind this rally is quite clear—geopolitical tensions are escalating. The UK and France are considering deploying troops to Ukraine, the new US administration is contemplating military arrangements in Greenland, and trade frictions over rare earths between China, the US, and Japan are intensifying. These global tensions have fully activated gold’s safe-haven appeal. Meanwhile, central banks have also signaled that they will continue to implement moderately loose policies into 2026. In an environment of ample liquidity, gold, which does not pay interest, becomes even more attractive. Interestingly, although the US dollar index hit a two-week high, buyers’ enthusiasm for gold completely overshadowed the negative impact of a strengthening dollar, allowing gold to rise independently.

From a daily chart perspective, the rally is driven entirely by safe-haven buying. Gold is now approaching the critical resistance at 4500. Trading volume and open interest are both rising, indicating strong bullish momentum. Once a successful breakout above 4500 occurs, the next target range is open—look toward 4520 to 4540. Even if a pullback happens, there’s no need to panic; the 4470 to 4480 zone is a solid support level, and a dip to this area could be a good entry point.

Trading strategy: Follow the trend and go long. Accumulate positions on dips around 4470-4480, first watch whether the 4500 level can be broken. If it does, continue targeting 4520-4530.