Bullish Signs for XAU as Gold Price Stays Close to $2,500

XAU didn’t make any new record highs last week, however, the Gold price is sticking to 2,500, which shows that Gold buyers are not letting go. The price has been consolidating around this major level last week despite some notable USD strength, while zooming out on the daily chart still shows that the trend is still bullish and we’re likely to see new record highs this year, as the FED starts to cut interest rates.

The recent strength of the US dollar has been a key factor in preventing gold buyers from pushing prices to new all-time highs last week. However, the downward pressure on gold was not as pronounced as in the forex market, where the USD made significant gains against major currencies.

Gold Chart Daily – The 20 SMA Holds As Support

Yesterday, the broad-based dollar reached a two-week high, supported by reduced market expectations for aggressive rate cuts by the Federal Reserve. Previously, markets had priced in a 50 basis point rate cut, but now that expectation has dropped to 25 basis points. While the strong dollar has been a major influence on gold prices, ongoing geopolitical tensions are adding complexity to market dynamics, keeping investors cautious and limiting the downside for gold.

US Elections and Gold Prices

The US elections are also playing a role in influencing gold prices, as the outcome could have a significant impact, especially if Donald Trump wins. Under a Trump presidency, the potential for a worldwide tariff could lead to lower gold prices initially, as such measures might boost the dollar and suppress gold demand.

However, these price swings would likely be temporary, as market dynamics could reverse in the long run, depending on the broader economic and geopolitical implications of the policies implemented. Investors are keeping a close watch on the election developments, anticipating how different outcomes might shape economic policy and, in turn, the gold market.

Gold Live Chart