This week, gold struggled to hit a new high but failed to do so, and analysts still maintain its bullish outlook

This week, the price of gold rose strongly due to the influx of safe haven funds, reaching a high of $2478 at one point, but later failed to hold onto the upward trend and gradually fell back to fluctuate around $2455.50 on Friday. The market sentiment is generally optimistic about the upcoming interest rate cut in the United States, and investors are eagerly anticipating next week’s speech by Federal Reserve Chairman Powell, hoping to capture a clear signal about the magnitude of the rate cut.

Tim Walter, Chief Market Analyst at KCM Trade, pointed out that given the expected continued decline in global interest rates, the bullish trend in the gold market remains stable. He predicted that the gold price still has the potential to reach a new high of US $2500, but stressed that the realization of this goal requires a significant rebound in the demand for risk aversion, as well as the further decline of the US dollar exchange rate and treasury bond bond yield.

At the same time, the key economic data released this week effectively eased market concerns about the possibility of the US economy falling into recession. However, the market generally expects the Federal Reserve to take interest rate cuts in September. Ajay Kedia, the head of Kedia Commodities, proposed a more specific price forecast, stating that gold prices are expected to find solid support at $2440 in the current market environment and encounter initial resistance at $2485. In the long run, gold prices are expected to climb to the range of $2585 to $2590.