Many are puzzled by gold's recent sharp rise. This surge is primarily driven by the metal establishing a solid base in the $4,000–$4,100 range over the long term, combined with a pullback in the US Dollar Index, progress in US-Iran negotiations, and diminished market expectations regarding a Federal Reserve rate hike in September.

Looking at the 1-hour chart, gold encountered significant selling pressure after spiking toward the $4,300 level and is currently undergoing a minor corrective pullback. However, a bullish trend has clearly been established; gold is poised to challenge higher levels in the $4,350–$4,380 range. Consequently, this pullback presents an excellent opportunity to open long positions.

I believe that going long when gold pulls back to the $4,255–$4,260 zone is a great opportunity today. The target range is $4,300–$4,320, with a stop-loss at $4,240.