Gold prices (XAU/USD) continue to rise, supported by expectations that the Federal Reserve will cut interest rates in the near future, concerns over U.S. financial conditions, and ongoing geopolitical tensions.

? Anticipation of Fed Rate Cuts

Many investors believe the Federal Reserve could lower interest rates by the end of 2025 due to falling wages and commodity prices. When interest rates decline, investors often shift toward safe-haven assets like gold, rather than holding traditional cash.

? Weaker U.S. Dollar from High Debt Levels

There are rising concerns about the United States’ growing national debt and unsustainable government spending. A weaker dollar boosts gold’s appeal to foreign investors, as gold is denominated in U.S. dollars.

? U.S.-China Tensions Fuel Market Uncertainty

Reports suggest that the U.S. President plans to meet with the Chinese President amid ongoing trade tensions. During periods of uncertainty or global conflict, investors tend to buy gold to protect their assets.

? Key Technical Levels

  • Support level: $3,324 – A drop below this level may indicate weakened upward momentum.

  • Resistance level: $3,380 – A breakout above this point could push prices to $3,400 or higher.

? Important Economic Events to Watch

  • Today: Release of ADP Non-Farm Employment Change and ISM Services PMI reports.

  • Friday: The highly anticipated Nonfarm Payroll report, which is considered the week’s most important labor data.

? Summary

Key drivers of gold’s continued upward momentum:

  • Fed rate cut expectations → Investors shift to safe-haven assets

  • High U.S. debt levels → Weaker dollar → Stronger gold demand

  • Global uncertainty → Increased preference for gold as a hedge

  • Technical indicators still support a bullish trend