Safe Haven Sentiment Rises, Supporting Factors Reemerge
Gold prices have again received a strong boost from several fading supporting factors. The Fed's interest rate cut issue resurfaced after a significant decline in the labor market report.
Weak US Nonfarm Payrolls data at the end of July fueled expectations of a Fed rate cut in September, strengthening gold's appeal as a safe haven asset. US Inflation & Policy: Concerns about inflation caused by trade tariffs and uncertainty about US policy (including criticism of the Fed's independence) have boosted investor interest in safe haven assets like gold.
Global Demand Rises: Gold purchases by central banks and ETFs increased significantly in Q2 2025 (up 45% from a year earlier) in response to global market volatility.
Citi's bullish forecast raises its gold price projection to $3,500–$3,600 per oz in the next three months, citing a weakening US economy, tariff inflation, and a weakening dollar.
Fundamentally, current global conditions are very supportive of gold—thanks to inflation, a weakening US budget, geopolitical instability, and expectations of lower interest rates.
Key resistance lies around $3,380–$3,400/oz, with a breakout above that level potentially opening up a target of $3,500–$3,600, as forecast by Citi. On the downside, the first technical support level is around $3,300/oz; failure to hold this level could trigger a correction below the $3,200–$3,150 consolidation area.
Source: Newsmaker.id
