Gold is currently holding firm at the $5,060 per ounce zone, even though the NFP figures came out strong at 130,000 jobs, nearly double expectations. Usually, such a good NFP number would cause gold to fall, but not this time! The main reason is that safe haven demand remains strong because US-Iran tensions are still unresolved. The Chinese central bank has also been buying gold continuously for several months. The market is waiting for the US CPI, which could change the game.

From a technical perspective, gold is still forming an interesting ascending triangle pattern. If it breaks above the resistance at $5,093 with increased volume, the target could reach $5,500 or higher, close to the all-time high. However, attention should be paid to the ascending trendline at $4,920–$4,940 because a break below this could trigger a sharp sell-off. The RSI is at 55–60, still far from overbought, indicating that gold has room to move higher.

Observing the market, silver in China is in severe shortage. Futures prices are much higher than spot prices. Traders are competing to buy for delivery. This is a critical warning sign because when silver runs, gold usually follows. China is the biggest player in the gold market right now. Their relentless buying of precious metals, regardless of price, reflects a strong move to "escape the yuan" and "escape the dollar" into hard assets aggressively.

For short-term traders, wait for the US CPI on Friday. If CPI is below 2.5%, gold may surge. If it exceeds expectations, there could be selling opportunities for better entry points. For those already holding gold, stay calm. The fundamentals haven't changed—central banks are still buying, and interest rates are trending downward. Holding long-term is the better strategy.