Recently, people keep asking me if gold is still worth chasing? To be honest, the question itself is already wrong.

You need to distinguish between two things: the major trend and the minor fluctuations. From a long-term perspective, the fundamental situation of this bull market in gold has not changed - it has soared more than 60% this year, directly breaking through 4000 dollars. Goldman Sachs has conducted research, and more than 70% of institutions are bullish, with even one-third of them believing that it could reach 5000 dollars next year.

Why is it so strong? There are three reasons supporting this: global central banks are hoarding aggressively, the expectation of interest rate cuts from the Federal Reserve has lowered the holding costs, and the ongoing geopolitical tensions and uncertain economic outlook. These three forces combined make gold the king of safe-haven assets right now.

But that being said, adjustments still need to be made in the short term. From a technical perspective, the RSI indicator is already nearing its peak, and with news of a ceasefire coming from the Russia-Ukraine situation, risk aversion sentiment will likely wane. I think there's a high probability of a retracement to around $4000.

My opinion is simple: gold is no longer just a safe-haven asset; it has become a long-term allocation asset. However, the upward trend is never a straight line; the right approach is to position during pullbacks, as chasing highs will only give money to the market.

What do you think? Are you planning to wait for a pullback before entering, or do you think it can go straight to $5000? Let's chat in the comments.