Gold Daily | Gold Surges Amid Fed Rate Cuts, Geopolitical Tensions; Eyes on Key $2,640 Resistance

【Latest Gold Price and Recent Trends】

Gold prices have surged to $2,635 per ounce, continuing the bullish trend from late 2024. Key drivers include significant rate cuts by the Federal Reserve, strong central bank gold purchases, and geopolitical tensions.

【Technical Analysis】

Gold is attempting to break key resistance at $2,640.00 per ounce, which would indicate a bullish outlook targeting $2,700.00. However, technical indicators show overbought conditions, suggesting a potential price retracement below $2,600.00.

【Market Sentiment and Economic Background】

Investor focus is on U.S. interest rates, with the Federal Reserve adopting a cautious pace on rate cuts due to inflation concerns. This cautious stance, coupled with geopolitical uncertainty, continues to make gold a preferred safe-haven asset. Upcoming U.S. economic data, such as jobless claims and manufacturing reports, will be closely watched for clues on the Fed's policy trajectory. Furthermore, geopolitical risks involving the Middle East and Russia-Ukraine conflicts are expected to support gold as a traditional safe haven.

【Analyst Opinions】

Analysts suggest a bullish trend for gold in 2025, driven by geopolitical risks and expectations of increased government debt due to fiscal deficits. Although the Federal Reserve's slower rate cuts and a stronger dollar may pose challenges, the ongoing geopolitical uncertainties and central bank purchases are expected to sustain gold's appeal as a safe-haven asset. Analysts emphasize that a breakout above $2,800 could push gold towards $3,000, highlighting the potential for significant gains if key resistance levels are breached.