Gold Price Outlook – Gold Continues to See Buyers as Market Breaks Out
News Summary
According to FX Empire's analysis, the gold market is experiencing sustained upward pressure, having broken above the top of an ascending triangle and firmly clearing the $3,500 level. The article suggests that buyers will continue to emerge on dips, viewing them as opportunities to find value. Technical analysis indicates that gold has moved higher during Tuesday's Asian and European sessions, with short-term pullbacks likely to be bought into. The market's stability above $3,500 has resolved previous uncertainties about a definitive breakout. The analyst anticipates a return to normal trading volumes in September, particularly after the release of US jobs data. Furthermore, widespread expectations for the Federal Reserve to cut interest rates at least once, and likely twice, in 2025 are seen as a positive catalyst for gold. Ongoing geopolitical tensions and the continued hoarding of gold by central banks worldwide also provide a natural bid. Technical projections suggest gold could reach the $3,800 level.
Background
Gold, as a traditional safe-haven asset, has historically seen its price movements profoundly influenced by macroeconomic factors, geopolitical risks, and monetary policy expectations. In 2025, the global economy faces multiple uncertainties, including persistent inflationary pressures, the pivot in major central banks' monetary policies, and the potential escalation of geopolitical conflicts. Following Donald J. Trump's re-election as US President in November 2024, market expectations regarding future US fiscal policies and trade relations have introduced new variables, potentially exacerbating global uncertainties. The widespread expectation for the Federal Reserve to initiate interest rate cuts in 2025, alongside actions from other global central banks, forms a critical backdrop influencing the US dollar's trajectory and gold's appeal.
In-Depth AI Insights
What are the deeper drivers sustaining gold's upward trajectory beyond immediate technical breakouts? - Beyond technical breakouts, gold's sustained strength primarily stems from the demand to hedge against global systemic risks. Under the re-elected Trump administration, its