We are re-entering a long position in XAU/USD following a prior attempt that was invalidated due to a broad-based risk-on environment, which temporarily weighed on safe haven demand. However, the market backdrop has shifted materially, with clearer signs of a risk-off tone returning.

Rising geopolitical tensions, softening global growth indicators, and elevated volatility across equities and credit markets are prompting a renewed flight to safety. This is supportive of gold, particularly as real yields begin to stabilize and US rate cut expectations remain on the table.

We believe the current environment presents a more favorable setup for gold, as capital seeks defensive assets amid macro uncertainty. With investor flows rotating back into havens and technical levels aligning with renewed bullish momentum, we see upside potential in XAU/USD in the near term.

LONG XAUUSD

May 30 2025