Gold Continues Its Upward Path, Eyeing a New Record High

According to FXStreet, the price of gold (XAU/USD) has risen for the third consecutive day, reaching a peak of $2,758 in the early hours of Wednesday, marking the highest level since November 2024. Despite a slight pullback from this level, gold remains in positive territory, continuing to capture the attention of traders.

Factors Driving Gold Prices Up:

Expectations of Federal Reserve Interest Rate Cuts: It is anticipated that the Federal Reserve will reduce interest rates twice this year. This move could weaken the dollar and boost demand for gold. This factor has been one of the main drivers behind the rise in gold prices.

New Trade Tensions: Shortly after taking office, Donald Trump announced his intention to impose a 25% tariff on imports from Canada and Mexico. This has raised concerns about the onset of a new trade war, which has increased demand for safe-haven assets like gold. Additionally, the conflicts that occurred last year have been a significant contributor to the surge in gold prices.

The current price of gold is $2,750. Let's analyze the gold market using technical data:

Resistance Levels for Gold:

The $2,758 level is expected to act as a key short-term resistance. If gold reaches this price point, we may see a reaction and even a potential correction.

If the price fails to react at this level, the next resistance zone would be around $2,790.

Support Levels for Gold:

• $2,725 to $2,720: This zone is a key support area.
• $2,700 to $2,690: Another critical support region.
• $2,625: A more significant long-term support level.

Conclusion

Gold continues to be influenced by expectations of interest rate cuts, new trade tensions, and the volatile state of the global market. The outlook suggests that gold has reached a point of saturation, and a period of consolidation and correction is likely. It remains to be seen how the market will develop further, but logically, gold may need a break before pushing higher.