Gold Daily | Gold Prices Poised for Weekly Rise Amid Geopolitical Tensions and Strong Dollar Impact
Friday, Dec 27, 2024 7:01 am ET
1min read 【Latest Gold Price and Recent Trends】
Gold prices have slightly retreated but are poised for a weekly rise due to Middle East political uncertainties driving investor interest in safe-haven assets, offsetting the pressure from a stronger dollar. Current spot gold is around $2,630, up 0.3% this week.
【Technical Analysis】
Spot gold is consolidating above $2,630, with the 9-day and 14-day EMAs providing short-term support. A decisive break above $2,640 could stop the bearish trend and lead to a rebound towards $2,700, with significant resistance around $2,726. If gold falls below current support levels, selling pressure may increase, pushing prices towards a monthly low of $2,583.
【Market Sentiment and Economic Background】
Gold prices rise amid geopolitical tensions, notably the Russian attacks on Ukraine's energy systems and Israel's strikes on Yemen. The dollar index has been stable, reflecting a strong dollar environment making gold more expensive for holders of other currencies. This year, gold has surged 28%, fueled by Federal Reserve rate cuts and global tensions, with more gains expected as markets brace for potential policy shifts with Trump's upcoming presidency.
【Analyst Opinions】
Analysts suggest that gold remains attractive as a geopolitical and inflation hedge, with expectations of exceeding $3,000 per ounce next year. Mumbai's Kedia Commodities predicts high volatility due to geopolitical tensions in the first half of the year and profit-taking in the latter half. With Trump's return to the presidency in 2025, markets are preparing for significant policy changes that could sustain inflationary pressures, conducive to gold's price growth.
Gold prices have slightly retreated but are poised for a weekly rise due to Middle East political uncertainties driving investor interest in safe-haven assets, offsetting the pressure from a stronger dollar. Current spot gold is around $2,630, up 0.3% this week.
【Technical Analysis】
Spot gold is consolidating above $2,630, with the 9-day and 14-day EMAs providing short-term support. A decisive break above $2,640 could stop the bearish trend and lead to a rebound towards $2,700, with significant resistance around $2,726. If gold falls below current support levels, selling pressure may increase, pushing prices towards a monthly low of $2,583.
【Market Sentiment and Economic Background】
Gold prices rise amid geopolitical tensions, notably the Russian attacks on Ukraine's energy systems and Israel's strikes on Yemen. The dollar index has been stable, reflecting a strong dollar environment making gold more expensive for holders of other currencies. This year, gold has surged 28%, fueled by Federal Reserve rate cuts and global tensions, with more gains expected as markets brace for potential policy shifts with Trump's upcoming presidency.
【Analyst Opinions】
Analysts suggest that gold remains attractive as a geopolitical and inflation hedge, with expectations of exceeding $3,000 per ounce next year. Mumbai's Kedia Commodities predicts high volatility due to geopolitical tensions in the first half of the year and profit-taking in the latter half. With Trump's return to the presidency in 2025, markets are preparing for significant policy changes that could sustain inflationary pressures, conducive to gold's price growth.
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