Gold futures surged past the $2,700 per ounce mark for the first time, setting a new all-time high as the precious metal defies conventional market dynamics. The December contract hit $2,725.40, up 0.66%, while spot gold climbed 0.71% to $2,711.94.
Bullion's impressive performance comes against the backdrop of a strengthening U.S. dollar, which has gained approximately 4% over the past three weeks. This inverse correlation defiance underscores the unique factors driving gold's current rally.
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Open account Try demo Download mobile app Download mobile appGeopolitical tensions remain at the forefront, with the ongoing Middle East conflict, particularly the Israel-Hamas war, stoking risk-off sentiment. Recent developments, including the reported elimination of a key Hamas leader, have further intensified market concerns, driving capital flows into safe-haven assets despite dollar strength.
The approaching U.S. presidential election is adding another layer of uncertainty. With polls showing divergent results, investors are increasingly positioning for potential volatility. This "election hedge" strategy has manifested in growing long positions on gold, as market participants seek to diversify their portfolios ahead of possible political turbulence.
Central bank policy expectations continue to influence gold prices. While the Federal Reserve's recent hawkish tone has supported dollar strength, investors are still pricing in potential rate cuts in the medium term. This forward-looking sentiment may be contributing to gold's appeal, even in the face of a stronger dollar.
Demand fundamentals remain robust, with central banks maintaining their bullion buying spree. Western institutional investors are showing renewed interest in gold-backed ETFs, with holdings on track for their fifth consecutive month of inflows, the longest streak since 2020.
Market sentiment in the gold sector remains decidedly bullish. At the recent LBMA conference, industry experts projected gold prices to reach $2,917 per ounce by late October 2025, highlighting the positive long-term outlook for the precious metal.
In summary, gold's record-breaking rally is occurring despite recent dollar strength, driven by a combination of geopolitical risk premium, pre-election hedging, strong physical and ETF demand, and long-term monetary policy expectations. As global uncertainties persist, gold continues to attract significant investor interest, breaking through key technical levels and asserting its role as a preferred safe-haven asset. The precious metal's ability to rally in the face of a stronger dollar underscores the complex interplay of factors currently influencing the gold market.
Gold (D1 interval)
Gold is currently trading 0.7% higher today. It has set a new all-time-high. First support will be the previous high of $2685 per ounce. Below is also a 15-day SMA, acting as a support in this bull run. RSI is entering the oversold zone, which can give bulls another argument for price growth if the indicator remains heightened. MACD again gives a buy signal on the daily chart. For bears to regain control, the support set at previous high and then at 15-day SMA must be broken.
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