Gold Continues to Attempt New Records Again and Again
Global gold continued its attempt to set a new record on Monday (September 8th), approaching its all-time high. The prospect of a US interest rate cut by the Federal Reserve (The Fed) and global uncertainty continued to drive demand for the precious metal as a hedge.
Spot gold prices moved in the range of US$3,586–3,590 per ounce, just slightly below the record US$3,599.89 reached last week. This increase was primarily supported by weak US employment data, which reinforced speculation of a 25 basis point Fed rate cut this month, with the possibility of a more aggressive cut of up to 50 bps.
The weakening US dollar and falling bond yields were the main catalysts for the gold rally. Meanwhile, central banks remained net buyers, although the pace of accumulation slowed. Global investors also viewed gold as a safe haven amid geopolitical uncertainty and financial risks.
Several major banks remained optimistic. RBC Capital Markets projects that gold prices could reach US$3,800 per ounce in 2025–2026, while Goldman Sachs even believes that an extreme scenario could see gold reach US$5,000 per ounce if the market loses confidence in the Fed.
Technically, gold trading signals indicate a Strong Buy trend across various timeframes. Prices are currently holding above the support area of US$3,555–3,565, while key resistance is at the psychological level of US$3,590–3,600.
If gold can break through this level, it has the potential to continue rising to US$3,615–3,650. Conversely, failure to hold above this support could trigger a correction towards the US$3,529–3,473 zone.
With fundamental support from expectations of US monetary easing and geopolitical uncertainty remaining, the short- to medium-term outlook for gold is positive. However, investors should remain vigilant about the potential for price corrections if investment demand weakens or there is a significant improvement in the global economy. (mrv)
Source: Newsmaker.id
