{"id":126534,"date":"2025-12-23T16:46:26","date_gmt":"2025-12-23T14:46:26","guid":{"rendered":"https:\/\/ironfx-com.wp-dev.int.theitops.net\/?p=126534"},"modified":"2026-01-15T14:36:29","modified_gmt":"2026-01-15T12:36:29","slug":"golds-weekly-update-golds-price-reaching-new-record-high-levels","status":"publish","type":"post","link":"https:\/\/www.ironfx-cn.com\/nl\/golds-weekly-update-golds-price-reaching-new-record-high-levels\/","title":{"rendered":"Gold\u2019s Weekly Update: Gold\u2019s price reaching new record high levels"},"content":{"rendered":"

Gold\u2019s price continued to rise since our last report<\/a> and highlighting the precious metal\u2019s bullish tendencies, its price reached new record high levels. <\/p>\n\n\n\n

Please note that we are entering the winter holiday season in the Americas and Europe, given Christmas and New Year celebrations, which implies that a number of trading desks are to be empty, thus thin trading conditions may apply over the next two weeks, which in turn may enhance unexpected and wide moves of the precious metal\u2019s price, to either direction. <\/p>\n\n\n\n

In today\u2019s report we are to discuss fundamental issues affecting gold\u2019s price such as the market\u2019s expectations for the Fed, geopolitical tensions and the validity of the negative correlation of the USD with gold\u2019s price. <\/p>\n\n\n\n

We are also adding a technical analysis of gold\u2019s daily chart at the end of the report for a rounder view.<\/p>\n\n\n\n

The market\u2019s dovish expectations for the Fed<\/strong><\/h2>\n\n\n\n

One of the factors supporting gold\u2019s price over the past week have been the increased expectations for the Fed to cut rates in the coming year. Currently Fed Funds Futures (FFF) imply that the market expects the bank to proceed with two more rate cuts in the coming year, once in April and once in July. <\/p>\n\n\n\n

Please note that Fed policymakers\u00a0 in their last dot-plot had signalled that they expect only one more rate cut, in the coming year, hence one could deduce that the market\u2019s expectations at the current stage are more dovish than what the Fed policymakers expect. <\/p>\n\n\n\n

Should we see the market\u2019s dovish expectations intensify we may see gold\u2019s price getting additional support in the coming days and the contrary a possible easing of the market dovish expectations for the Fed\u2019s intentions could weigh on gold\u2019s price. \u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n\n\n\n

Geopolitical tensions are maintained<\/strong><\/h2>\n\n\n\n

Since our last report we note that gold\u2019s price may have also gotten support from safe haven inflows generated from an escalation of tensions on a geopolitical level. The war in Ukraine is ongoing, despite the efforts of the US for a possible ceasefire, and at the current stage we see little incentive for either side to actually reach a peace deal. <\/p>\n\n\n\n

Hence we may see the US escalating the pressure on the two sides further, which may intensify uncertainty in the markets and in turn increase safe haven inflows for the precious metal. Also we highlight the tensions in the US-Venezuelan relationships as a factor that could potentially affect gold\u2019s price. <\/p>\n\n\n\n

We note that since our last report, the US has seized a second ship while media report that the US is in pursuit of a third vessel. On the other hand Venezuela has decided to provide escort with its Navy to any oil tankers given the US blockade and actions. <\/p>\n\n\n\n

The situation is at a\u00a0 very delicate stage and possibility of US military operations on the ground of Venezuela cannot be excluded, which would signal further escalation of the tensions and thus could provide additional support for gold\u2019s price.<\/p>\n\n\n\n

Last but not least we also note a flare up of tensions between Israel and Iran, with Israeli PM Netanyahu visiting the US next week seeking to discuss with US President Trump a possible attack on Iran while Iran on the other hand is conducting missile exercises. A possible new flare up of tensions, or another Israel-Iran war could also provide support for gold\u2019s price. <\/p>\n\n\n\n

On the contrary should we see an easing of market worries for the three prementioned issues we may see gold\u2019s price suffering a retreat.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0<\/p>\n\n\n\n

Negative correlation of the USD with gold\u2019s price inactive<\/strong> <\/h2>\n\n\n\n

Since our last report we note that gold\u2019s price has been steadily on the rise, yet the USD initially strengthened and then retreated against its counterparts in the FX Market. <\/p>\n\n\n\n

Despite the two trading instruments following the same direction in the past week, the opposite occurred yesterday and today in the European session. <\/p>\n\n\n\n

For the time being we do not see the negative correlation of gold to the USD as being active and its characteristic that the release of the better than expected US GDP advance rate for Q3 earlier today, despite providing some support for the USD at the time of its release, failed to affect gold\u2019s price.<\/p>\n\n\n\n

Gold Technical Analysis<\/strong><\/h2>\n\n\n\n

XAU\/USD Gold H4 Chart<\/strong><\/strong><\/strong><\/strong><\/h3>\n\n\n\n
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