Gold Daily | Gold Hits New High Above $3,650 Amid Rate Cut Expectations and Weak Dollar

【Latest Gold Price and Recent Trends】

The international gold price has reached a new high, trading above $3,650 per ounce. The increased expectations for Federal Reserve interest rate cuts have weakened the dollar and decreased bond yields, boosting demand for precious metals. The price of gold has surged nearly 39% this year, driven by a weak dollar, central bank purchases, dovish monetary policies, and global uncertainties.

【Technical Analysis】

Gold prices have surpassed the crucial resistance level of $3,650 per ounce, setting new historical highs. It appears poised to reach $3,700, $3,750, or even $3,800 per ounce in the coming weeks. Technical indicators suggest a strong upward trend, with the bullish sentiment remaining intact, despite overbought conditions. The 20-day simple moving average (SMA) supports the upward momentum above the 100- and 200-day SMAs.

【Market Sentiment and Economic Background】

U.S. non-farm payroll data fell short of expectations, reinforcing the likelihood of a Federal Reserve rate cut next week. The U.S. Labor Department's upcoming employment revisions may indicate weaker job growth, increasing pressure on the Fed to relax policies. Lower U.S. rates exert pressure on the dollar and bond yields, enhancing gold's appeal. Traders are pricing in an 88% probability of a 25-basis point cut and a 12% chance of a 50-basis point cut.

【Analyst Opinions】

Goldman Sachs forecasts a bullish outlook for gold, projecting a price of $3,700 per ounce by late 2025 and potentially reaching $5,000 per ounce if global capital markets shift. Market analysts suggest that continued weak U.S. economic data could extend the gold rally, driven by further declines in the dollar and bond yields. If gold prices break through $3,650, subsequent targets are $3,700, $3,750, and $3,800 per ounce.