Gold Daily | Gold Futures Surge Amid Geopolitical Tensions, Central Bank Purchases, and Fed Policy Shifts

【Latest Gold Price and Recent Trends】

Gold futures surged, with February 2025 contracts rising by $34.90, or 1.30%, to $2,717.80 per ounce. This marks a significant shift in trading patterns, supported by geopolitical uncertainty in the Middle East and central bank activities, notably from China.

【Technical Analysis】

Gold broke from its consolidation range to reach near the resistance level of $2,700. On daily charts, the trend remains bullish due to the Fed's easing cycle, though a short-term pullback is possible as markets adjust rate cut expectations. The U.S. CPI report could trigger significant market moves, with high data potentially causing a sell-off, while lower-than-expected figures may support gold.

【Market Sentiment and Economic Background】

Geopolitical tensions, particularly in the Middle East, have heightened safe-haven demand for gold. Central banks' actions, especially the People's Bank of China resuming gold purchases, indicate a renewed interest in gold as a strategic asset. The Fed's monetary policy, with expectations of a rate cut at the upcoming FOMC meeting, further influences the gold market. Despite a stronger dollar, gold prices have appreciated, defying traditional commodity price indicators.

【Analyst Opinions】

Goldman Sachs maintains a bullish outlook on gold prices, arguing against the view that gold cannot reach $3,000 by the end of 2025 even with a strong dollar. The firm highlights ongoing geopolitical tensions, central bank strategies, and anticipated monetary policy shifts as supportive factors for gold.