Gold Daily | Gold Hits Record High on Fed Rate Cut Hopes and Geopolitical Tensions

【Latest Gold Price and Recent Trends】

Gold futures surged to a record high of $2,614.60, driven by recession concerns and potential Federal Reserve rate cuts. It marked the 34th record close this year.

【Technical Analysis】

Gold's outlook remains bullish unless prices drop below $2,564.50. Resistance is at $2,645-$2,688, with potential support at $2,510-$2,560.

【Market Sentiment and Economic Background】

The anticipation of Fed rate cuts is the primary short-term driver for gold prices. CME tools indicate a 57% probability of a 25 basis points cut and a 43% chance for a 50 basis points cut. Lower rates support gold. Global factors like geopolitical tensions and central bank gold purchases, which reached a 14-year high, also bolster gold's appeal.

【Analyst Opinions】

Analysts expect gold to perform well during potential Fed rate cuts. Adrian Ash notes speculative trading in derivatives, rather than physical gold, is prominent. ING sees gold's upward trend continuing, predicting prices to average $2,700 by 2025. UBS and other firms emphasize gold's role as a hedge against macroeconomic and geopolitical uncertainties. Overall, gold is seen as a resilient asset, especially amid economic uncertainty and potential monetary policy changes.