- Gold prices 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 well known, gold prices recorded annual gains during 2024, the best performance since 2010, with a profit rate of 27 percent.
- Furthermore, an optimistic bullish outlook dominates the sentiment towards the future of gold prices in the coming months.
- Moreover, the strength of the US dollar has curbed bulls’ appetite for risk-taking.
The gold market will follow the policy of the US Central Bank
Gold market performance has been cautious of late as investors focus on the trajectory of US interest rates under Trump, which is always characterized by an increase in the country’s inflation rate due to its trade wars, according to trading from the platform of gold trading companies. Gold’s record gains were primarily the result of factors such as the US Federal Reserve’s easing cycle, demand for it as a safe haven and a wave of record purchases by central banks.
In the meantime, the beginning of tightening policy by the US Federal Reserve will negatively affect the movement of gold prices. Also, we saw the drop in gold prices right after the US Federal Reserve Governor Jerome Powell indicated that the bank will not be in a hurry to lower interest rates in the future.
Gold prices will continue to rise
Gold prices rose by 27 percent during 2024. Profits came, as we mentioned, as investors returned to traditional safe havens amid an uncertain geopolitical and economic climate. With geopolitics gearing up for another hectic year and inflation looking increasingly entrenched in many Western economies, many gold investors expect another year of gains in 2025. Commenting on performance and expectations, Rick Kanda, CEO of The Gold Bullion Company, says: “There’s no denying that 2024 was a record year for gold.” He added: “The price of gold has reached new, huge highs. This is a result of economic uncertainty, changes in global inflation and increased demand.”
In general, gold has performed particularly well during times of uncertainty, when investors tend to allocate less of their portfolios to volatile stock and bond markets. The consensus that the gold market has intrinsic value – thanks to its practical use in jewelry and many technology products, and its historical use as a currency – adds to its appeal when markets are volatile.
Trading Tips:
Note that central banks and individuals are eager to return to buying gold and are waiting for the best trading opportunities. So be careful and keep a close eye on the factors affecting the gold market.
Technical analysis of gold price and expectations today:
According to the performance on the daily time frame chart above and according to the forecasts of today’s gold analysts, gold prices are still in a neutral position. However, we see that the trend is bullish, and the dominance of the bulls will strengthen if prices return to the resistance level of $2660 and $2685 per ounce, which naturally paves the way for a return to the psychological resistance of $2700 per ounce. Clearly, it is important for the bulls to restart a strong upward movement. Conversely, and in the same time frame, the trend may tilt towards bearish dominance if prices once again return below the support levels of $2622, $2605 and $2585 per ounce.
Gold Trading Signals:
We still recommend buying gold from every level down, but risk-free 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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