Gold trend is expected to hit new highs

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This round of gold price rise is driven by multiple factors, the most critical of which is the uncertainty of the global economy and geopolitics. Recently, the minutes of the January meeting of the Federal Reserve (FOMC) of the United States reiterated that the US economy is still facing inflationary pressure, and more continuous evidence is needed to confirm the contraction of inflation. At the same time, the market is also closely following the peace talks between the United States and Russia on the situation in Ukraine, which undoubtedly exacerbated the market's concerns. In addition, Trump's tariff remarks have also added uncertainty to the market, especially his plan to impose a 25% tariff on imported cars and medicines, further increasing the risk of trade friction.

Gold price trend and technical analysis:
From a technical point of view, spot gold has broken through the resistance level of $2,947 and continues to challenge the historical high of $3,000/ounce. The recent increase in gold prices is quite significant. Since the beginning of 2025, the price of gold has risen by more than 320/ounce, an increase of nearly 12.2%. This performance makes gold still highly attractive in global asset allocation, especially in the context of continued global economic and geopolitical tensions.

At present, the technical indicators of gold prices show strong buying power, but we should also be wary of possible overbought conditions in the market. As gold prices approach their all-time highs, investors' risk of profit-taking at high levels has increased, especially if global geopolitical tensions ease or the US dollar index rebounds, which may lead to a short-term correction in gold prices. Therefore, at the current high level, the gold market may face more volatility and adjustment pressure.

Future trend outlook:
In the short term, gold prices still have the potential to rise further, especially if geopolitical risks remain high, or US economic growth slows, and market expectations for the Fed's interest rate cuts intensify, gold prices are expected to continue to break through the historical high of $3,000/ounce. However, as market sentiment changes, especially if trade disputes or geopolitical conflicts ease, gold prices may also face certain correction pressure. Therefore, investors need to be cautious when operating at high levels, avoid excessive chasing, and pay close attention to the dynamics of the global economic and political situation.

In general, the bullish pattern of gold will still dominate in the short term, but the high volatility of the market requires investors to maintain a flexible trading strategy, especially in the face of sharp price fluctuations that may be triggered by risk events.

Mr. Baker
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