XAUUSD

As of now, the price of gold stands at $2,656. I anticipate a potential decline over the next hour, primarily due to the price having tested and bounced off the current resistance level, indicated in purple on the chart. The positive U.S. economic data released today underscores growing confidence in the U.S. economy. This, combined with the Federal Reserve’s recent interest rate cuts, suggests a possible strengthening of the U.S. dollar (USD) and the DXY index throughout the remainder of the week, likely exerting downward pressure on gold and similar assets.

This trend is already observable with currency pairs such as GBP/USD, as seen in the adjacent chart.

Long-Term Outlook

Recent global developments paint a mixed outlook for gold (XAU/USD). Factors such as increased central bank purchases, potential further interest rate reductions by the Federal Reserve, and ongoing geopolitical tensions may support gold prices. Current forecasts predict gold could reach approximately $2,795 by March 2025, reflecting a 7% rise from current levels. However, this growth is expected to occur at a slower pace than the impressive 27% surge observed in 2024.