Jan 01, 2025 (MENAFN via COMTEX) --
(MENAFN - Daily Forex)
Gold price has retreated and broken below the $2600 level once again. Meanwhile, the attempts by the gold price index to rebound higher during the Christmas holiday week to the resistance level of $2639 per ounce have failed.
Overall, the continued gains of the
US dollar have supported the bears in pushing the price of
gold bullion to $2596 before the current
gold prices stabilized around $2607 at the time of writing this analysis. The
gold market has been significantly affected recently by changes in the future policies of the US Federal Reserve. In its last meeting of 2024, the US Federal Reserve cut interest rates by a quarter of a point as expected, but did not indicate an acceleration of the pace of cuts during 2025, which increased selling pressure on gold. During 2024, the US Federal Reserve cut interest rates by 100 basis points, and in 2025, markets expect the bank to cut US interest rates twice instead of the previous expectations of four times.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Why did
gold prices decline again?
According to
gold trading company platforms,
gold prices were negatively affected by tightening signals from the US Federal Reserve amid concerns that Trump's official policies in 2025 could lead to a renewed increase in inflation rates. This could affect the amount of
gold price gains in the fourth quarter of 2024. Recent US economic data figures have come in better than expected, increasing speculation that the US Federal Reserve may adopt fewer interest rate cuts in the new year 2025, which would be negative for the
gold market.
Will
gold prices rise in the coming days?
Furthermore, we still expect a recovery in
gold prices in the coming period. We must not forget that global geopolitical tensions have not ended but are increasing, and this is an important environment for
gold market gains. Historically,
gold prices have been supported by the growing demand for safe-haven assets throughout 2024, led by the Russian Ukrainian wars, the Israeli Palestinian conflict with Lebanon, and the expansion of the conflict to strikes in Yemen. According to trading data,
gold prices have risen thanks to large volumes of purchases by global central banks, led by the efforts of the People's Bank of China to boost reserves, which pushed prices to a record high of $2790 in September.
In the new year 2025,
gold investors will focus on uncertainty about US monetary policy, the reaction to Trump's trade wars, and China's efforts to revive economic growth Tips:
Always make
gold a pillar of the investment portfolio permanently, as the historical path of
gold prices is upward. Also, do not forget that the price of
gold is heading for its best annual performance in 10 years Price Technical Analysis and Expectations Today:
There is no doubt that the movement of the
gold price below the $2600 per ounce level increases the dominance of the bears but will not change the broader upward trend on the daily chart. The return of
gold prices to resistance levels of $2645 and $2666, respectively, will give the bulls the necessary momentum to launch towards the psychological resistance of $2700 per ounce again. Conversely, and over the same time period, the movement of
gold prices towards support levels of $2605, $2585, and $2558 per ounce will be important for
gold investors to consider buying
gold again.
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