Gold prices continue their impressive run, marking a third straight week of gains. Investors remain optimistic as expectations of Federal Reserve rate cuts and rising geopolitical risks push demand higher. The precious metal has already hit record highs 16 times this year, with four surpassing $3,000. As global uncertainty increases, many traders wonder if gold’s rally can last or if a pullback is near.
Federal Reserve Policies Fuel Gold’s Rise
The Federal Reserve has kept interest rates between 4.25% and 4.50%. Officials signaled that two quarter-point cuts could happen by late 2025. Fed Chair Jerome Powell linked slower economic growth to inflation pressures and new trade tariffs. Lower interest rates often weaken the dollar, making gold more attractive as a safe-haven asset.
Kyle Rodda, a financial analyst at Capital.com, believes gold’s fundamentals remain strong. “We don’t even need a major trigger for gold to hit another high,” Rodda stated. However, he also noted that a short-term pullback to the lower $3,000 range is possible before the next upward move. Investors will be closely watching the market for signals of continued strength.
Geopolitical Tensions Increase Safe-Haven Demand
Gold’s latest surge is linked to rising geopolitical risks, especially in the Middle East. Reports confirm that Israel resumed airstrikes and ground operations in Gaza after a two-month ceasefire collapsed. At the same time, trade uncertainties under President Donald Trump’s leadership continue to shake global markets. These developments increase gold’s appeal as a hedge against economic and political turmoil.
Can Gold Bulls Stay in Control?
Gold (XAU/USD) is trading near $3,027, down 0.07% after breaking below its recent trend channel. A “Three Black Crows” candlestick pattern suggests bearish pressure is growing. Analysts believe a correction could occur before another surge. However, as long as uncertainty persists, gold remains a top choice for investors looking for stability.
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