Gold appears to be holding above key technical levels. Yardeni Research said in a note Friday that support should hold, making the recent pullback a potential entry point for investors willing to look past near-term headwinds tied to the Middle East conflict.
The precious metal peaked on January 29 before tumbling near the end of March as fighting escalated. It rebounded through mid-April during a brief ceasefire but is now testing its March 26 low, its 200-day moving average and its intermediate uptrend line simultaneously.
Yardeni Research said "that's quite a bit of support, which should hold, in our opinion," noting that the pullback has also returned gold to the upward-trending channel that has been in place since late 2023.
The firm maintained its price targets of $5,500 by year-end and $10,000 by the end of the decade, arguing that "the rally in gold should resume once the war is over."
Yardeni identified the stronger dollar, upward pressure on interest rates and central bank gold sales as the primary near-term headwinds. The Federal Reserve is flagged as an additional risk, likely turning more hawkish during the summer.
The long-term case is tied to a broader call for the S&P 500 to reach 10,000 by decade's end, with investors expected to rebalance progressively into alternative assets including gold as equity markets advance.
