#Gate广场五月交易分享 Gold and silver are rising a bit "unreasonably"

Today, these precious metals are simply "going crazy" with gains! International gold prices directly broke through the $4,700 mark, and silver is even more aggressive. Yesterday, it was a deep V reversal, and today it’s soaring high, with bullish momentum fierce.
Why is it so strong? Simply put, market sentiment has changed. Originally, everyone was worried about the conflict in the Middle East, with oil prices soaring and inflation pressures mounting, making a Fed rate cut unlikely. But then, news came that there was progress in US-Iran negotiations, possibly reaching an agreement! Oil prices plummeted in response, and inflation concerns eased significantly. The market immediately started pricing in a "Fed rate cut" expectation, the dollar weakened, and assets like gold and silver, which do not generate interest, gained attractiveness and surged.
Additionally, silver has its own "hard logic"—not enough supply! Global silver has been in continuous shortage for several years, especially in high-tech industries like photovoltaics, electric vehicles, and AI servers, where demand for silver is extremely strong. As inventories decrease, prices naturally gain confidence.
What’s the strategy?
Gold: The short-term rally is too rapid, and technical indicators are starting to look "overheated," so chasing the high carries risks. The strong resistance zone is around $4,730–$4,750, which has trapped many previously. So, don’t rush to chase the highs; wait for a pullback opportunity. If gold can hold steady around the support zone of $4,660–$4,690 on a retest, consider entering long positions more safely. Keep an eye on tonight’s US initial jobless claims data, which could cause some volatility.
Silver: More elastic than gold and also more volatile. The long-term supply and demand story is very attractive, but short-term fluctuations are also significant. If you are a medium- to long-term trader, you can buy on dips in batches; if you are a short-term trader, be sure to set stop-loss orders, control your position size, and be cautious of sudden jumps and drops.
Wishing everyone successful trading and abundant luck in wealth! 😀