- Gold prices have started the new year 2025 on an upward trajectory, reaching the resistance level of $2636 per ounce and stabilizing near that level at the time of writing.
- As is known, gold prices recorded annual gains during the year 2024, the best performance since 2010, with a profit rate of 27 percent.
- Furthermore, the optimistic bullish outlook dominates sentiment towards the future of gold prices in the coming months.
- Moreover, the strength of the US dollar stopped bulls' desire to take risks.
The Gold Market Will Monitor US Central Bank Policy
According to trades from gold trading company platforms, the performance of the gold market has been cautious recently as investors focus on the trajectory of US interest rates under Trump's leadership, which is always characterized by raising inflation rates in the country due to its trade wars. The record gains in gold were primarily due to factors such as the US Federal Reserve's easing cycle, demand for it as a haven, and a wave of record purchases by central banks.
Meanwhile, the beginning of the tightening of the US Federal Reserve policy will negatively affect the path of gold prices. Also, we saw a decline in gold prices immediately after the indications from the US Federal Reserve Governor Jerome Powell that the bank will not rush the pace of interest rate cuts in the future.
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Gold Prices Will Continue to Rise
Gold prices rose by 27 percent during the year 2024. Its gains came, as we mentioned, as investors returned to the traditional safe haven amid an uncertain geopolitical and economic climate. With geopolitics preparing for another hectic year, and inflation looking increasingly entrenched in many Western economies, many gold investors are expecting another year of gains in 2025. Commenting on the performance and expectations, Rick Kanda, Managing Director of The Gold Bullion Company, says: “There is no denying that 2024 was a record year for gold.” Added, “The price of gold reached new, tremendous highs. This is a result of economic uncertainty, changes in global inflation, and increased demand.”
In general, gold has performed particularly well in times of uncertainty, when investors tend to allocate less of their portfolios to volatile stock and bond markets. The consensus that the gold market holds intrinsic value - thanks to its practical use in jewellery and many technological products, and its historical use as currency - adds to its appeal when markets are volatile.
Trading Tips:
Keep in mind that central banks and individuals are eager to return to buying gold and are waiting for the best trading opportunities. Therefore, be careful and monitor the factors affecting the gold market well.
Gold Price Technical Analysis and Expectations Today:
According to the performance on the daily timeframe chart above and according to today's gold analysts' forecasts, gold prices are still in a neutral position. However, we see that the trend is bullish, and the bulls' dominance will strengthen if prices return to the resistance levels of $2660 and $2685 per ounce, respectively which naturally paves the way for a return to the psychological resistance of $2700 per ounce. Clearly, it is important for the bulls to launch a strong upward move again. Conversely, and on the same timeframe, the trend may lean towards bear dominance if prices return below to support levels of $2622, $2605, and $2585 per ounce again.
Gold trading Signals:
We still recommend buying gold from every downward level, but without risk and activating profit limit and stop loss orders to ensure the safety of the trading account from any sudden price reversals. Follow gold Signals and other free trading Signals through our website.
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