Gold Daily | Gold Nears Record Highs Amid Geopolitical Tensions and Fed Rate Cuts, Trading Remains Thin

【Latest Gold Price and Recent Trends】

Gold prices rose by 0.4% to around $2,625 amid thin holiday trading, supported by geopolitical tensions. Over 2024, gold surged 27%, driven by Federal Reserve rate cuts and geopolitical uncertainties, nearing its best performance since 2010.

【Technical Analysis】

Gold remains in a neutral range, trading between $2,550 and $2,720. While the RSI is stable below mid-levels, the price stays above the 200-day moving average, suggesting a bullish trend. However, resistance is noted at $2,650 to $2,670.

【Market Sentiment and Economic Background】

Geopolitical tensions, particularly between Hamas and Israel, elevate gold's appeal as a safe haven. The Fed's cautious rate cut approach in 2025 and President Trump's tariff policies could affect gold's outlook. With holidays across several markets, trading volumes are expected to remain low.

【Analyst Opinions】

Analysts suggest that recent dollar stagnation has allowed gold to recover. A traditional year-end rally might further boost prices. Despite potential tariff impacts, the Fed's limited rate cuts in 2025 might stabilize gold above $2,500, with potential to reach $2,850. Gold remains favored during geopolitical and economic turmoil, with central bank purchases contributing significantly to demand. Additionally, the establishment of the Hong Kong Gold Exchange aims to elevate Hong Kong as an international gold trading hub, reflecting optimism in the precious metals industry.