Gold’s Rally Extends to New Record Highs
Gold (XAUUSD) surged again, settling at $3,688.90 per ounce, marking its third consecutive all-time high close. The move underscores strong bullish momentum as investors position ahead of an expected Federal Reserve rate cut. Historically, looser monetary policy supports non-yielding assets like gold, boosting its role as both an inflation hedge and a safe-haven asset.
Fed Policy Shift & Inflation Risks Boost Gold
Analysts point to rising stagflation concerns—high inflation and slowing growth—as a major driver behind gold’s strength. U.S. CPI rose 2.9% in August, reinforcing expectations for accommodative Fed policy. Bank of America notes that since 2001, gold has never declined when inflation exceeded 2% during periods of monetary easing.
This historical pattern suggests gold could continue its upward momentum as the Fed signals multiple rate cuts by year-end.
Gold’s Performance Across Timeframes
- 52-week low: $2,564.30 → Current surge of +43.8%
- 2025 low (January): $2,638.40 → Gain of +39.8% YTD
- Month-to-date: +6.2%
- Year-to-date: +40.3%
These figures confirm gold’s dominance in commodities markets, outperforming peers amid global uncertainty.
Technical Outlook: Key Levels Ahead
- Immediate resistance: $3,700 – $3,713
- Support zones: $3,630 → $3,600 → $3,565
- Trend base: 20-day moving average at $3,465
While momentum remains firmly bullish, overbought RSI levels above 80 suggest potential for a near-term pullback before the next rally.
What’s Next for Gold?
The convergence of weakening U.S. dollar, geopolitical tensions, and stagflation fears provides strong fundamental support for gold’s continued climb. Institutional and sovereign demand further reinforce the bullish narrative, making dips attractive buying opportunities.
With the Fed expected to cut rates in September, traders are watching for a breakout toward the $3,750–$3,800 zone in the short term, while longer-term projections keep $4,000 within reach.
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