Gold price forecast (XAU/USD) have soared to a new record high, reaching the $2,522-$2,523 range during the early European trading session. This surge is driven by ongoing weakness in the US Dollar (USD) and heightened geopolitical tensions. The Federal Reserve’s anticipated rate cuts and regional conflicts have influenced this notable price movement.
Gold Price Performance: USD Weakness and Geopolitical Tensions
Gold price forecast have recently achieved a new record high, breaking out of previous consolidation patterns. The continuous decline in the USD has been a significant factor behind this price jump. The market anticipates the Federal Reserve will initiate rate cuts in September, which contributes to gold’s appeal.
Federal Reserve’s Influence on Gold Prices
Market expectations for a Federal Reserve rate cut in September have pushed the USD to its lowest point since January. The CME Group’s FedWatch Tool suggests a high probability of interest rate cuts, potentially lowering borrowing costs significantly by late 2025.
Technical Analysis: Gold Price Forecast and Predictions
From a technical perspective, if gold breaks above the $2,510 level, it may signal further bullish momentum. Oscillators on the daily chart indicate that gold prices are still in positive territory, suggesting continued upward potential. The $2,500 level is now a crucial support point, with further declines likely to attract buyers around $2,448-$2,446.
USD Performance and Currency Changes
Today’s table displays the percentage changes of the USD against major currencies, highlighting its strength relative to the Euro. This data reflects the USD’s overall position in the currency market, providing insights into its impact on gold prices.
Conclusion
The combination of a weak USD and ongoing geopolitical tensions continues to drive gold prices to new highs. Investors are closely watching economic and political developments that could further influence gold’s trajectory.
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