Positive momentum surrounds gold prices with its approach from the highest level within months

Gold prices continue in their positive movement approaching the highest levels it achieved months ago at a time when traders remain not sure about future moves, according to the Investing platform.

Interest rates and gold path

While the strict federal reserve bank position is a burden on gold, the decrease in the returns of US Treasury bonds provides support to the metal.
It also reduces the high dollar index, which is the weakness of bonds, which contributes to the bullish payment of gold.
Market morale is also affected by concerns about US President Donal Trump’s plans for customs tariffs and his call to reduce interest rates.
Gold benefits from these factors, although the federal reserve policy is still limiting its potential to achieve more gains while investors monitor the upcoming economic data to obtain a more clear direction.
Also read: Gold prices achieve a new jump with the anticipation of US inflation data

Focus on inflation data

The market concentration also turns on inflation data in the consumer price index in the United States and the European Central Bank policy.
Gold prices swing in a narrow range near the summit of their weekly trading, maintaining their levels near its highest levels in several months.
The performance of the precious metal price supports the sharp decrease in the returns of American treasury bonds, which sparked a shift in the morale of investors towards gold as a safe haven.
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The next step for gold

Investors are waiting for other economic data to determine the next step for gold, it is expected that the next monetary policy decision for the European Central Bank will make some fluctuations in the market, while inflation data in the United States will be on Friday as an engine for future policy expectations of the FBI. These developments provide the following incentive. The direction of the price of gold.

Factors support the rise of gold

The performance of gold prices remains largely supported by the weak US dollar and low bond returns, yet the hard -line federal reserve is still a specific factor in the risk of climbing as the uncertainty in the market provides different signals to traders.
The sales of gold alloys witnessed a rise, reaching record levels at the end of 2024, when investors looked to hedge against the state of global uncertainty and the maximum benefit from the tax advantages of the precious metal.
“A mixture of economic uncertainty and geopolitical fluctuations led to the rise in gold prices to multiple levels in 2024,” said Stewart Orili, a London market expert.

Gold moves last year

Over the year 2024, the value of gold increased by more than 26 % bypassing the Standard & Poor’s 500 index, while the yellow metal increased by 800 % since 2000.
The price of gold reached the highest level at 2790 dollars an ounce on October 31, while its price rotates at 2743 dollars an ounce, while the expected trading scope remains between the support level of 2745.00 dollars and the resistance level of 2780.00 dollars in a sign of continuing to improve and ascend.