Gold Prices Seek to Overcome Their Worst Week in Three Years

Forex - Gold is experiencing its worst week in three years, starting a downward trend influenced by the uncertainty surrounding Trump's election victory and the pace of future Fed interest rate cuts. In his statement last night, Fed Chairman Powell justified the caution in rapidly lowering interest rates due to steady economic growth, a strong labor market, and ongoing inflation, which has prevented gold from reacting strongly to the sharp declines.

Since the close on Friday, November 8, gold has fallen by 4.4%. During the day yesterday, gold reached its lowest level in two months at $2536.89 and is currently trading at $2566.6.

Forex.com analyst Fawad Razaqzada stated that the weakness in gold reflects expectations for a more restrictive U.S. monetary policy under the Trump administration in 2025. City Index senior analyst Matt Simpson mentioned, "While Powell's comments could limit gold's gains as we enter the new year, another turbulent period for President Trump may also draw safe-haven flows."

Simpson noted that with a calm U.S. economic calendar next week, gold could recover and potentially retest the $2600 level. Analysts are indicating that the support level for gold today is at $2552. If this level is breached, the target could be $2530, while resistance is seen at $2610.