--- title: "Gold Returns Above Key Trend Line: Can Bulls Regain Control?" type: "News" locale: "en" url: "https://longbridge.com/en/news/285801592.md" description: "Gold prices have risen for four consecutive days, regaining momentum and breaking through key moving averages. Benefiting from a weaker US dollar, continued central bank gold purchases, and cooling rate hike expectations, gold is seeing a rebound opportunity. However, resistance at the $4,800 level remains, and the overhang of inflation and rate hikes has not dissipated. Amidst the key battle between bulls and bears, can this \"gold rush\" continue?" datetime: "2026-05-09T07:23:53.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285801592.md) - [en](https://longbridge.com/en/news/285801592.md) - [zh-HK](https://longbridge.com/zh-HK/news/285801592.md) --- # Gold Returns Above Key Trend Line: Can Bulls Regain Control? Gold is regaining momentum. After rising for four consecutive trading sessions, gold prices have moved back above key short-term technical moving averages, sparking market discussion on whether this rebound can sustain. On Friday, gold futures closed up 0.44% at $4,720.40 per ounce, marking the longest winning streak since April 9. The weekly cumulative gain reached 1.95%, or $90.50 per ounce. According to Tyler Richey, technical analyst and co-editor at Sevens Report, gold prices broke above the 21-day moving average (blue line in the chart below) on the day—a short-term trend line that serves as an important reference for traders to judge whether momentum is improving. At the same time, it tested the 50-day moving average (red line in the chart below) for the second consecutive day, which is generally regarded as a more significant indicator for measuring medium-term direction. The main driver of this rally is the weakening US dollar. Lukman Otunuga, Head of Market Research at global trading broker FXTM, stated that optimistic expectations for a potential peace agreement between the US and Iran eased some geopolitical concerns, putting pressure on the US dollar. On Friday, the ICE US Dollar Index fell 0.2% to 97.84. Since gold is priced in US dollars, a weaker dollar typically reduces the purchase cost for holders of other currencies, thereby boosting demand. ## Multiple Factors Provide Support In addition to the weaker US dollar, the linkage effect between energy prices and Federal Reserve policy expectations also provided support for gold prices. Aakash Doshi, Head of Global Gold Strategy at State Street Investment Management, pointed out that as the risk of a sharp surge in oil prices diminishes, the pressure on the Federal Reserve to raise interest rates may also ease, which is bullish for gold. Central bank gold buying continues to underpin the market. Doshi further noted that China has been continuously increasing its gold reserves—according to data released by the People's Bank of China on Thursday, China has increased its gold holdings for the 18th consecutive month. Gold has risen 9.1% year-to-date but remains about 11.2% below the historical high of $5,318.40 per ounce set in January. Looking back at previous trends, gold surged last year and continued into early 2026, driven by a wave of global central bank gold purchases and market concerns over fiscal expansion and currency depreciation—particularly factors related to the US. However, after hitting the historical high in January, gold prices subsequently retreated. ## Technicals Have Not Yet Issued a Clear Bullish Signal Despite the recent rebound, the overall technical signals remain cautious. Tyler Richey stated that gold is currently attempting to break out of the weak sideways pattern formed since early April, but the chart pattern has not yet issued a clear bullish signal, and the recent trend remains weak. He pointed out that gold prices need to break more forcefully through the $4,800 to $4,900 per ounce range to confirm that bulls have regained control of the market; conversely, a closing price below $4,400 would serve as a warning signal. ## Inflation and Rate Hike Expectations Pose Potential Resistance Uncertainties facing gold have not dissipated. Inflation concerns could quickly turn into resistance to price increases. According to CME FedWatch data, federal funds futures traders are currently pricing in a probability of no less than 14.4% that the Federal Reserve will raise interest rates at least once before the end of the year. Rising interest rates typically increase the opportunity cost of holding gold, exerting downward pressure on gold prices. This means that if inflation data exceeds expectations or the Federal Reserve's policy stance turns hawkish, the current rebound momentum in gold may face tests. ### Related Stocks - [GOLD.US](https://longbridge.com/en/quote/GOLD.US.md) - [601899.CN](https://longbridge.com/en/quote/601899.CN.md) - [600547.CN](https://longbridge.com/en/quote/600547.CN.md) - [NEM.US](https://longbridge.com/en/quote/NEM.US.md) - [AEM.US](https://longbridge.com/en/quote/AEM.US.md) - [KGC.US](https://longbridge.com/en/quote/KGC.US.md) - [GOAU.US](https://longbridge.com/en/quote/GOAU.US.md) - [RING.US](https://longbridge.com/en/quote/RING.US.md) - [IAU.US](https://longbridge.com/en/quote/IAU.US.md) - [159562.CN](https://longbridge.com/en/quote/159562.CN.md) - [GDXW.US](https://longbridge.com/en/quote/GDXW.US.md) - [82824.HK](https://longbridge.com/en/quote/82824.HK.md) - [NUGT.US](https://longbridge.com/en/quote/NUGT.US.md) - [UGL.US](https://longbridge.com/en/quote/UGL.US.md) - [SGDJ.US](https://longbridge.com/en/quote/SGDJ.US.md) - [09824.HK](https://longbridge.com/en/quote/09824.HK.md) - [GDX.US](https://longbridge.com/en/quote/GDX.US.md) - [02824.HK](https://longbridge.com/en/quote/02824.HK.md) - [GDXY.US](https://longbridge.com/en/quote/GDXY.US.md) - [GLD.US](https://longbridge.com/en/quote/GLD.US.md) - [JNUG.US](https://longbridge.com/en/quote/JNUG.US.md) - [SGDM.US](https://longbridge.com/en/quote/SGDM.US.md) - [GDXJ.US](https://longbridge.com/en/quote/GDXJ.US.md) - [GOEX.US](https://longbridge.com/en/quote/GOEX.US.md) - [518850.CN](https://longbridge.com/en/quote/518850.CN.md) - [GLDM.US](https://longbridge.com/en/quote/GLDM.US.md) - [SGOL.US](https://longbridge.com/en/quote/SGOL.US.md) - [STT.US](https://longbridge.com/en/quote/STT.US.md) - [SPIN.US](https://longbridge.com/en/quote/SPIN.US.md) ## Related News & Research - [PRECIOUS-Gold extends gains as US-Iran peace hopes ease inflation concerns](https://longbridge.com/en/news/285562829.md) - [LIVE MARKETS-In gold, we trust?](https://longbridge.com/en/news/285521171.md) - [Canada's Torex Gold Q1 revenue rises on pricing strength](https://longbridge.com/en/news/285448137.md) - [BUZZ-Gold miners rise as bullion hits two-week high](https://longbridge.com/en/news/285555526.md) - [PRECIOUS-Gold dips as inflation concerns linger; markets watch US-Iran talks](https://longbridge.com/en/news/285015047.md)