Gold Continues to Rise, Supported by Safe-Haven Demand

Forex - Gold prices continue to rise, supported by safe-haven demand amid the escalation of the Russia-Ukraine war. Gold gained 4.78% this week, marking its best weekly increase in the past year. Marex analyst Edward Meir stated that gold has been supported by Bitcoin's rise toward $100,000, the tensions between Russia and Ukraine, and the increased risk of conflict. Currently, gold is trading at $2,685.26, up 0.5% compared to yesterday.

Investors will be monitoring the U.S. consumer sentiment (final) data to be released at 0300 GMT, along with comments from Fed Governor Michelle Bowman for more clues regarding the outlook for interest rate cuts. Nicholas Frappell, head of global institutional markets at ABC Refinery, mentioned that gold's short-term movement could be influenced by significant U.S. data such as preliminary GDP and core PCE set to be released next week, with prices expected to aim for the $2,690-$2,715 range based on recent trends.

Morgan Stanley stated, "The gold rally paused after reaching record levels, and prices are expected to stabilize around $2,700/ounce in the first quarter of 2025. Strong physical demand and interest rate cuts have been the main driving forces; however, weakening demand and signs of macroeconomic volatility could limit further gains." The resistance level for gold is at $2,695, and if broken, $2,732 may be targeted. Support is found in the $2,656-$2,643 range.