How to Invest in Gold: Six Options to Consider
Gold Forecast and News
Gold loses the grip, breaks below $3,400
Gold now turns negative after breaching below the key $3,400 mark per troy ounce on Wednesday, all in response to the hawkish message from Chair Powell after the Fed’s steady hand at its gathering.
Latest XAU/USD News
XAU/USD Technical Overview
The daily chart for the XAU/USD pair shows it failed to attract investors for a second day in a row. Also, technical indicators remain well above their midlines, although without directional strength. Finally, XAU/USD develops above all its moving averages, with the 20 Simple Moving Average (SMA) heading marginally higher at around $3,347.10 while holding far above bullish 100 and 200 SMAs.
The near-term picture is neutral. In the 4-hour chart, technical indicators turned marginally higher yet mixed at around their midlines, unable to confirm a leg north. At the same time, XAU/USD develops below a mildly bearish 20 SMA, while the longer moving averages aim modestly higher, well below the current level.
Support levels: 3,382.85 3,366.10 3,352.40
Resistance levels: 3,406.90 3,414.60 3,437.85
Fundamental Overview
Spot Gold hovers around $3,390 a troy ounce on Wednesday, unable to attract speculative interest ahead of the United States (US) Federal Reserve (Fed) monetary policy announcement.
Still, the bright metal remains afloat amid global tensions. Concerns revolve around trade talks and the Middle East crisis, with no progress at any front. On the one hand, US President Donald Trump “complained” about tough negotiations with the European Union and Japan. On the other hand, tit-for-tat missile attacks between Iran and Israel entered their sixth consecutive day, with no signs of de-escalation.
The Fed is widely anticipated to keep interest rates on hold, with the focus on the Summary of Economic Projections (SEP) and Chairman Jerome Powell's press conference. Policymakers will deliver fresh growth, inflation and employment expectations, alongside their estimate on future interest rate cuts. Currently, the latest SEP indicates that Fed officials are still aiming for two cuts in 2025. Any change in such perspective could have a wild impact on the US Dollar (USD).
SPECIAL WEEKLY FORECAST
Interested in weekly XAU/USD forecasts? Our experts make weekly updates forecasting the next possible moves of the gold-dollar pair. Here you can find the most recent forecast by our market experts:
Gold Weekly Forecast: Safe-haven flows lift precious metal to near all-time highs Premium
Gold (XAU/USD) turned north and climbed to its highest level since early May above $3,400. The Federal Reserve’s (Fed) monetary policy announcements and developments surrounding the Israel-Iran conflict could continue to impact XAU/USD’s performance in the near term.
Latest XAU/USD Analysis
Editors' picks
EUR/USD stalls below 1.1500 as Fed holds, Trump comments lift Dollar
The EUR/USD trades almost flat after climbing past the 1.1500 figure, following the Federal Reserve's decision to hold rates unchanged, amid increasing tensions in the Middle East. This, along with comments from US President Donald Trump, boosted the Dollar, capping the Euro’s advance.
GBP/USD weakens further, confronts 1.3400
GBP/USD is currently under increasing selling pressure, testing the 1.3400 support level on Wednesday, amidst a robust recovery in the Greenback following the Fed's decision to maintain rates and Chief Powell's hawkish remarks during his press conference.
USD/JPY drops as dovish Fed projections weigh on yields and focus shifts to Powell
Fed holds rates steady, signals two cuts this year. The 2-year yield slipped nearly 5 basis points to 3.9%, pulling USD/JPY lower by 0.45% on the day toward 144.50. Traders look to Fed Chair Jerome Powell for clarity on the rate path amid uncertainty over inflation, fiscal policy, and tariffs.
Gold loses the grip, breaks below $3,400
Gold now turns negative after breaching below the key $3,400 mark per troy ounce on Wednesday, all in response to the hawkish message from Chair Powell after the Fed’s steady hand at its gathering.
WTI Oil price holds gains near $74.00, boosted by rising geopolitical risks
Fears that the US might get involved in the Middle East war are buoying Oil price. Crude Oil futures are rallying on concerns about supply disruptions. Iran's ambassador to the UN has vowed a strong response if the US gets involved in the war.
Majors
Cryptocurrencies
Signatures
XAU/USD YEARLY FORECAST
How could XAU/USD move this year? Our experts make a XAU/USD update forecasting the possible moves of the gold-dollar pair during the whole year. Don't miss our 2025 XAU/USD forecast!
XAU/USD 2025 FORECAST
In the XAU/USD 2025 Forecast, FXStreet analyst Eren Sengezer suggests Gold’s 2025 outlook depends on Federal Reserve (Fed) policy, Donald Trump’s decisions and geopolitics. A bearish scenario could unfold if geopolitical tensions ease, inflation remains persistent and United States-China trade tensions weaken China’s economy, reducing Gold demand. A hawkish Fed could also pressure prices.
On the bullish side, continued global policy easing, a recovering Chinese economy or escalating geopolitical conflicts could boost safe-haven flows into Gold, supporting its resilience and pushing prices higher.
Gold's technical outlook suggests weakening bullish momentum, with the RSI at its lowest since February and XAU/USD. Key support lies at $2,530-$2,500, with further declines potentially targeting $2,400 and $2,300. On the upside, resistance at $2,900 could limit gains, with additional barriers at $3,000-$3,020 and $3,130 if Gold attempts a new record high.
MOST INFLUENTIAL FACTORS IN 2025 FOR XAU/USD
In 2025, Gold's outlook will be shaped by the US Federal Reserve’s monetary policy, geopolitical tensions and central bank demand. If geopolitical tensions, such as the Russia-Ukraine conflict or Middle East issues, de-escalate, Gold may face downward pressure after benefiting from these crises in 2024. Central bank demand will also be crucial and any slowdown in buying could weigh on prices.
About Gold
Gold (XAU/USD)
In the Forex market, Gold functions as a currency. The particularity of Gold is that it is traded against the United States Dollar (USD), with the internationally accepted code for gold being XAU.
Known as a safe-haven asset, Gold is expected to appreciate in periods of market volatility and economic uncertainty. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. The United States is the country that holds the biggest resources of Gold in the world.
The XAU/USD pair tells the trader how many US Dollars are needed to purchase one troy ounce of Gold.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold prices escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher borrowing costs usually weigh on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars. A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
ORGANIZATIONS THAT INFLUENCE XAU/USD
- WGC (World Gold Council) is the market development organization for the Gold industry. Its aim is to stimulate and sustain demand for the precious metal.
- LBMA (London Bullion Market Association) is an organization whose members participate in this wholesale over-the-counter market for trading Gold and Silver. It is loosely overseen by the Bank of England. Most LBMA members are major international banks, bullion dealers, and refiners.
- COMEX (Commodity Exchange) is the primary market for trading metals. The COMEX merged with the New York Mercantile Exchange (NYMEX) in 1994 and joined the CME Group in 2008.
- CGSE (Chinese Gold and Silver Exchange Society) is an organization of Gold trading firms in Hong Kong that are participants of the Chinese Gold and Silver Exchange, the first exchange in Hong Kong.
- Central banks like the Federal Reserve (Fed), the European Central Bank (ECB) or the People’s Bank of China (PBoC) significantly influence Gold prices through their monetary policies.
PEOPLE THAT INFLUENCE XAU/USD
- Neal Froneman, the World Gold Council’s Chairman.
- Scott Bessent, the US Treasury Secretary.
- Xi Jinping, President of the People's Republic of China.
- The London Bullion Market Association members.
CIRCUMSTANCES THAT INFLUENCE XAU/USD
The main variables traders should monitor to understand Gold’s position are:
- Demand and supply: The balance between global Gold demand and its availability impacts its price.
- Economic uncertainty and currency devaluation: Gold is widely known as a safe-haven asset for investors in periods of economic uncertainty or when a currency faces devaluation.
- Practical applications: The use of Gold in technology innovations, jewelry manufacturing and other industrial applications.
ASSETS THAT INFLUENCE XAU/USD
- Currencies: The US Dollar (USD) and the Euro (EUR) are the primary currencies influencing Gold prices. Other important currency pairs include EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, and USD/CAD.
- Commodities: Silver and Gold are the most important precious metal commodities.
- Bonds: Influential fixed-income securities include the German Bund (a federal government-issued bond) and the US Treasury Note (T-Note).
- Indices: Key indices related to Gold and mining include the HUI (NYSE Arca Gold BUGS), the XAU (Philadelphia Gold and Silver Index) and the GDM (NYSE Arca Gold Miners Index).
- Exchanges: The most important stock exchanges for Gold are the New York Mercantile Exchange (COMEX), the Chicago Board of Trade, the Euronext/LIFFE, the London Bullion Market, the Tokyo Commodity Exchange, the Bolsa der Mercadorias e Futuros and the Korea Futures Exchange.
