Article by: ETO Markets
Heading into the Christmas holidays, the latest analysis suggests that the price of gold, represented by "XAU/USD," is likely to maintain its current trajectory. The overall trend remains positive, and the fact that it's holding steady above the key psychological resistance level of $2,000 per ounce indicates continued bullish momentum.
The ongoing weakness in the US dollar is contributing to the strength of the gold market. Recent market activity is presenting a significant challenge to gauge investor interest, especially as the Federal Reserve initiates a much-anticipated shift towards lower US interest rates. Following the Fed's recent meeting, the XAU/USD price has experienced a notable upward surge, reaching a new all-time high of $2,135 per ounce.
In the past week, trading concluded at approximately $2,053 per ounce, having tested resistance at $2,070 per ounce during the same session. The overall upward movement in the price of gold can be attributed to the Federal Reserve's indication that they anticipate a 75 basis points reduction in US interest rates next year. This expectation, coupled with the slowdown in US inflation, has prompted investors to position themselves for easing, briefly propelling gold prices to an unexpected all-time high. The market sentiment remains positive as traders prepare for potential developments in the coming sessions.