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1:54 PM · 1 July 2025

🟡Gold Gains Over 1.3%

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The precious metal has risen over 1.3% today, testing the vicinity of $3350 per ounce. Furthermore, it has recovered above the support zone associated with its 25- and 50-period moving averages. This strengthening of gold is largely attributed to escalating uncertainty surrounding the U.S. dollar. The dollar's decline is a reaction to the recent turbulence between President Donald Trump and Federal Reserve Chair Powell, coupled with expectations of a substantial increase in U.S. debt. This debt surge could potentially destabilize the U.S. financial system should an economic slowdown occur.

However, it is worth noting that some negative short-term forecasts for gold are emerging. Analysts at HSBC suggest that demand from current levels is unlikely to increase further, which could cap price appreciation. While HSBC has raised its targets for the current and coming year, these projections remain below the present market price. Conversely, Citi analysts anticipate a 25% price decline, citing fatigue with current high levels and the dissipation of various geopolitical uncertainties. Citi also indicates limited scope for interest rate cuts this year, which could further restrict gold's price growth.

 

 

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