Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Gold Price Analysis: Gold Hits Another Record High

By Mahmoud Abdallah
Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of trading for his audience.
  • Gold futures hit another record high as the precious metal continues its sharp and record-breaking gains, fuelled by the Federal Reserve's interest rate cut.
  • Gold has been on a euphoric run, finding support from various developments beyond monetary policy.
  • While the precious metal appears to be in overbought territory, some analysts believe it could touch $2,700 an ounce before seeing a pullback.

Gold Analysis Today 25/9: Hits Another Record High (graph)

According to gold trading platforms, gold futures rose to $2,679.80 per ounce. Overall, gold is up 5% this month and has risen 30% since the beginning of the year. Over the past 12 months, the metal has gained about 39%. In the same performance, silver, gold’s sister commodity, rose $1,137, or 4.41%, to $32,455 per ounce. Overall, the price of the white metal rose about 9% in September and has advanced 35% so far this year.

Overall, the metals markets have benefited greatly from the Federal Reserve's shift in monetary policy stance. Federal Reserve officials, including Chicago Fed President Austan Goolsbee, have indicated that more US interest rate cuts are coming over the next year. But it's not just the Eccles Building that has engaged in this easing. Other global central banks, from the European Central Bank to the Bank of Canada to the People's Bank of China, have cut interest rates. As is known, low interest rates reduce the opportunity cost of holding non-yielding bullion.

Meanwhile, geopolitical tensions have further fuelled the gold index. Spot gold prices benefited from Israel’s strikes on Hezbollah targets in southern Lebanon, and its vow to continue these attacks. Experts have warned that this could exacerbate tensions in the Middle East.

For now, the US dollar has weakened, adding to gold’s gains. The US Dollar Index (DXY), a measure of the greenback against a basket of currencies, fell 0.36% to 100.48, from an opening of 100.97. Also, the index is down 1% so far. Generally, a weaker dollar is good for dollar-denominated commodities because it makes them cheaper for foreign investors to buy.

Now, traders are awaiting the US Personal Consumption Expenditures report due this week and additional speeches from several Federal Reserve officials to gauge the central bank’s next move. 

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

Gold Price Analysis and Forecast Today:

According to gold analysts today, gold prices are on a strong upward trajectory, and their consecutive gains have pushed all technical indicators towards strong overbought levels. There will be no strong selloffs to take profits without a rise in the US dollar and a de-escalation of global geopolitical tensions. Currently, the closest resistance levels for gold are $2670, $2685, and $2710 per ounce, respectively. Decisively, the caution should be exercised against excessive buying from the following peaks.

Ready to trade our Gold price forecast? We’ve made a list of the best Gold trading platforms worth trading with. 

Mahmoud Abdallah
About Mahmoud Abdallah
Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of trading for his audience.
 

Most Visited Forex Broker Reviews