What is the current global gold demand?Despite the record high price, the proportion of gold in total global financial assets is only about 2%. According to the World Gold Council, the amount of gold held by ETFs is still much lower than the peak in 2020.
This shows that there is still a lot of room for growth. The attraction of gold comes from its role as a "safe haven" in the context of rising inflation due to increasingly heavy government debt. The US alone has recorded an additional deficit of 2,000 billion USD this year, bringing the total public debt to over 37,000 billion USD.
Not only with USD, gold has also continuously reached peaks when calculated in Canadian dollars, British pounds, euros, Japanese yen and Australian dollars. Gold is currently trading above 5,000 USD/ounce compared to CAD.
The reason lies not only in global public debt, but also because many investors are beginning to worry that the US Federal Reserve (Fed) is losing its independence in monetary policy. Some experts believe that if the Fed cuts interest rates more aggressively in the coming years, especially when President Trump appoints more members to the council, gold will be strongly supported.
Ideasdetrading
World gold prices continuously reverseThe Federal Open Market Committee (FOMC) meeting, which began on Tuesday morning, will conclude on Wednesday afternoon (US time) with a statement and press conference by US Federal Reserve (FED) Chairman Jerome Powell. The FOMC is expected to cut the key interest rate by 0.25 percentage points - the first since November last year.
The new FED forecast may also show a slowdown in US economic growth and a rise in unemployment. At the press conference, Chairman Powell will have to answer many questions not only about the economic outlook and interest rates but also about the independence of the FED.
Global stock markets generally rose slightly overnight, while US index futures forecast a mixed opening. In other developments, the Cyberspace Administration of China is said to have asked companies like Alibaba and ByteDance to cancel orders for Nvidia's RTX Pro 6000D chips - a line of chips designed to avoid restrictions on exporting AI technology to China.
The move comes as the US and China have just announced progress in trade negotiations in Madrid (Spain).
Scenario of Fed cutting interest rates stronglyGold prices are hovering at record highs and all eyes are on the US Federal Reserve. A surprise decision – even a “dramatic cut” as President Donald Trump has suggested – could be the catalyst for a new wave of price increases.
Although the Fed is expected to cut interest rates by another 0.25 percentage points after its meeting on September 17, it is the language and tone of Fed Chairman Jerome Powell’s speech that will determine the next move for gold prices, according to the World Gold Council’s (WGC) weekly market report.
Last week’s gold price action reflected a mix of inflation data and political turmoil. In the US, mixed inflation, a cooling labor market and weak consumer confidence kept expectations of interest rate cuts high.
The immediate reflection level is at an overnight high of 3,687Gold prices rose after a surprise rise in US weekly jobless claims and a easing in US consumer price index (CPI). Meanwhile, silver prices rose steadily.
US weekly jobless claims rose by 27,000 from the previous week, up 263,000 from the previous week, above the forecast of 235,000. The report is seen as a factor supporting the “doves” in monetary policy, who want the US Federal Reserve (FED) to cut interest rates more aggressively.
Meanwhile, US annual inflation, as measured by CPI, rose to 2.9% in August, the highest level since January and higher than July’s 2.7%. Prices rose mainly in the food group, used cars and new cars.
CPI rose 0.4% month-on-month, up from 0.2% in July and above forecasts for 0.3%. The expansion after producer prices rose more than expected in July was somewhat muted. Core CPI, which excludes food and energy, remained unchanged at 3.1%, matching the rebound in February and July. Core CPI rose 0.3% month-on-month.
Inflation in the US has become a complex issue.Inflation in the US has become a complicated issue for the gold market. Rising consumer prices have forced the Fed to maintain a neutral monetary policy, keeping interest rates unchanged until 2025, increasing the opportunity cost of holding gold. However, high inflation also increases the risk that the US could fall into recession, which is supporting safe-haven demand for the precious metal.
On the other hand, a weakening labor market has economists predicting that the Fed will cut interest rates again this month despite high inflation to complete the other half of its mission.
Specifically, the number of weekly unemployment benefits in the US increased by 27,000 compared to the previous week, to 263,000, higher than the market forecast of 235,000. Today's jobless claims report is in the group of monetary policy dovish, who want to see the US Federal Reserve (Fed) cut interest rates more aggressively.
Meanwhile, annual US inflation, as measured by the consumer price index (CPI), increased in August, to 2.9% compared to the same period last year. This is the highest level since January and up from 2.7% in the July report.
Gold as a safe haven asset.Even as the US dollar strengthened and Treasury yields rose, gold hit a new record high.
The precious metal’s rise reflects a fundamental shift in global reserve management strategies. Foreign central banks now hold a larger share of gold than US Treasuries in their international reserves for the first time since 1996, according to Crescat Capital macro strategist Tavi Costa.
Another key driver of gold’s rally has been shifting policy expectations from the US Federal Reserve. Market participants are increasingly confident that the central bank will deliver a 25 basis point interest rate cut this month, with current prices reflecting a 91.7% probability of such a move. That’s up from 86.4% just a day earlier and 87.8% a week ago.
World gold price today August 29, 2025According to the report just released, the US GDP grew by 3.3% in the second quarter, higher than the initial estimate of 3.0% and exceeding economists' expectations. Real GDP was revised up mainly due to improvements in investment and consumer spending.
The US Department of Labor just released labor market data. Initial jobless claims, seasonally adjusted, were 229,000 for the week ending August 23. This figure was only slightly lower than the forecast of 230,000. The previous week's figure was revised down from 235,000 to 234,000.
In addition, continuing jobless claims reached 1.954 million for the week ending August 16, lower than the expected 1.975 million.
The labor market remains strong, leaving the Federal Reserve (Fed) with room to tighten monetary policy, putting pressure on gold prices.
Market sentiment was further strained after US President Donald Trump on Monday decided to fire Federal Reserve Governor Lisa Cook over allegations of improper mortgage lending, raising concerns about the independence of the US central bank.
Safe-haven demand continues to hold support.Thus, after several consecutive sessions of increasing to a two-week peak, in response to signals of policy easing from Fed Chairman Jerome Powell as well as Mr. Trump's increasing pressure on the US central bank, gold prices have turned to decrease.
However, the decrease is quite small as safe-haven demand continues to maintain a strong support base.
The US PCE price index (used to measure inflation) released next Friday is expected to guide the gold market, with a consensus forecast of 2.6% for the overall index and 2.9% for the core index.
In the coming time, analysts warn that any erosion in the Fed's independence could boost demand for gold as a policy risk hedge.
In addition, global geopolitical and trade tensions remain persistent and are expected to continue to enhance the safe-haven value of precious metals.
On the afternoon of August 27 (Vietnam time), the US officially raised import tariffs on goods from India to 50%, double the previous rate of 25%, on the grounds that New Delhi continues to buy oil from Russia. This move could threaten trade relations between the US and India - one of Washington's most important partners, while pushing up prices of many commodities.
Domestic gold prices increase but international prices decreaseThirteen Wall Street analysts participated in Kitco's gold survey this week, with none calling for a decline. Of those surveyed, eight were bullish on gold for next week. The rest were neutral.
The main argument for the bullish group is the expectation of a rate cut by the Federal Reserve in September, following comments from Chairman Jerome Powell. Ole Hansen, head of commodity strategy at Saxo Bank, said that after a relatively quiet summer for the gold market, the Fed will help open the door by cutting interest rates through the end of the year.
This will weaken the US dollar, creating a positive environment for gold. In the short term, Hansen said that the precious metal could rise above $3,450 an ounce before investors can revisit April's record high above $3,500.
Resistance : 3375 , 3385
Support : 3352 , 3344
Interest rates are currently higher than necessary.The recent rise in inflation is mainly due to tariffs, which would put inflation at just 2%.
Kevin Grady, president of Phoenix Futures and Options, said interest rates are higher than they should be. He predicted the Fed would likely cut rates by 50 basis points unless inflation continued to rise. However, Grady said the recent rise in inflation was largely due to tariffs, and if that factor were excluded, inflation would be just 2%. He said this was just a one-time effect of the tariffs taking effect, not a long-term trend.
Regarding the gold market, Grady said the market is in a correction phase after last week's strong volatility. The price gap between futures and physical gold (EFP) jumped from $8 to more than $100 on July 21 due to tariff uncertainty. The gap later narrowed to $60 when the government confirmed that gold would not be subject to tariffs. Grady stressed that such large fluctuations make it difficult to trade physical gold, especially for banks and traders.
Gold price forecast difficult to break outThis week, analysts said that gold prices will still find it difficult to break out in the short term when the market lacks momentum to increase points. Factors that have supported gold prices to increase strongly in recent times, such as US tariff policies and geopolitical tensions in some regions, are all easing.
Mr. Daniel Pavilonis, senior commodities broker at RJO Futures, commented that although inflation data has edged up and interest rates have increased slightly, gold prices are still moving sideways within a narrow range. This development shows that gold is becoming less attractive in the eyes of investors and could fall below $3,000/ounce this year.
"If the US starts cutting interest rates and inflation rises higher, that could be a positive signal for gold. However, gold prices have been moving sideways for the past 4 months and the momentum for price increases in the short term is not high."
Gold Price ForecastThe weekly gold survey by an international financial information platform shows mixed views among experts and investors. Of the 10 analysts who responded, only 10% said that gold prices would rise again, 10% said that gold prices would fall, but up to 80% predicted that gold prices would remain stable. The lack of a clear trend in gold prices shows the unpredictability of precious metals.
Meanwhile, investors were more optimistic. Of the 183 investors who responded to the survey, 63% said that gold prices would rise again, 18% said that gold prices would fall, and 19% expected gold prices to remain stable.
Mr. Adrian Day - Chairman of Adrian Day Asset Management said that gold prices will continue to fluctuate within a narrow range with a steady upward trend. The US Federal Reserve's (FED) expected interest rate cut in September has been reflected in the market, so gold prices need more monetary easing to break out more strongly.
Financial markets are set to receive a slew of important newDomestic gold prices fell due to the impact of world gold prices. In the international market, after closing the week at a high level, today's gold price suddenly reversed and plummeted when opening the new trading week.
Gold prices fell contrary to the forecast of analysts and investors when they expected the precious metal to continue to increase this week.
This week, the market is waiting for a lot of economic information such as the meeting to announce Australia's interest rate decision; the US consumer price index (CPI) report for July; the US producer price index... The data of this information is expected to affect the gold price.
This morning, the USD index (DXY) in the international market recovered to 98.1 points, also creating pressure to reduce gold prices.
Gold price today August 5: strong reversalWorld gold prices unexpectedly reversed sharply, as Europe and the US continued to release poor economic data. Specifically, the European economic area announced the investor confidence index released monthly by Sentix GmbH, August at a decrease of 3.7 points, much lower than the increase of 4.5 points in July.
In the US, factory orders released monthly by the US Census Bureau, measuring the change in the value of new orders for goods purchased at US factories, decreased by 4.8% in June compared to the previous month. Although slightly higher than the forecast of a decrease of 4.9%, it decreased sharply compared to the increase of 8.3% in May.
Thus, both the US and the European region are showing weaknesses in economic development. Because new orders in the US are considered a forward-looking indicator of upcoming demand for manufactured goods. Falling orders indicate that the production and business activities of US enterprises will face difficulties in operation.
XAUUSD Outlook: Bull or Bear Move Ahead? Manage Risk📊 XAUUSD Market Insight 🌍
Gold is heating up once again, currently testing a tight range between 3080 and 3095. A breakout in either direction could set the tone for the next big move.
🔻 If price breaks below, we may see a slide toward 3060 and 3050—potential areas to watch for bearish momentum.
🔺 However, a strong push above 3095 could spark bullish energy, aiming for short-term targets at 3115 and 3127.
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The market is full of opportunity, but don’t forget: risk management is key. Use proper position sizing, set clear stop-losses, and never overexpose your capital. Stay sharp, trade safe, and let the market come to you. 🧠💼
NFP BIG BULL SETUP BREAKOUT ALERT!🔥 Market Update for Traders! 🔥
Right now, the market is showing BEARISH momentum, and it's looking like we're heading for a dip. We could see the market fall and sweep the area around 3052 👀. Once that happens, expect a *huge* bounce back as the market could be getting ready to **shoot to the moon 🚀🌕!
🛑 KEY BUY LEVEL: 3130 - This is where you want to be ready to go long! 📈
🎯 First Target: Once we hit 3130, eyes on the ATH (All-Time High) for the retest! 🙌 And from there, we're eyeing a target at 3200 🚀🔥.
💥 NFP News Incoming! 💥
After Trump's speech, gold could *fall* around 1000 pips ⬇️, but **NFP could trigger a huge pump 📊💥. Stay sharp and trade with caution.
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Trade smart, stay sharp, and let's get those gains! 💸💥
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Gold reverses sharply after Trump's tax announcementThe world gold price has reversed sharply because the global market has just received information last night (Hanoi time) that US President Donald Trump has just signed an executive order to impose taxes on all goods imported into the US, many countries will have to pay high taxes of up to tens of percent.
Specifically, the UK, Brazil, Singapore will be subject to a 10% tax. The European Union, Malaysia, Japan, South Korea, and India will be subject to 20-26%. China, Thailand, and Vietnam are among the countries subject to the highest tax rates, at 34%, 36%, and 46%, respectively. The highest is Cambodia, which will be subject to a tax rate of up to 49%. This tax rate will be applied from April 9. In addition, Mr. Trump said that a 10% import tax will be applied to all goods imported into the US from April 5.
Mr. Trump said that every year the US loses 1,200 billion USD due to the trade deficit due to 3,000 billion USD of imported goods.
After this information, the global financial market was shaken, in which the US stock market had a strong decline, losing from more than 1% to more than 2%. On the contrary, gold - an asset that ensures capital safety in case of risk - has benefited from a strong increase in price.
Many experts commented that the Trump government's tariff policy has increased global trade tensions. Previously, the US imposed tariffs on some goods from Canada, Europe and China, aluminum and steel. These countries have responded to the tariffs on the US.
Gold prices are no longer affected by investor reactions.Gold and silver prices posted strong gains on safe-haven demand amid escalating geopolitical tensions, with the US dollar index falling sharply as the trading week began.
Market risk appetite was heightened at the start of the week, following a tense meeting on Friday between US President Donald Trump and Ukrainian President Volodymyr Zelensky, which raised concerns about US-Ukraine relations and the prospects of a ceasefire between Ukraine and Russia.
Meanwhile, US trade tariffs on Mexico, Canada and China are set to take effect on Tuesday. Gold prices started the week on a strong note after posting its worst weekly performance in three months.
For April gold futures, the bulls still have the upper hand in the short term, but the uptrend on the daily chart has been temporarily invalidated. The next target for the bulls is to close above solid resistance at the contract high of $2,974/oz.
Meanwhile, the bears' target is to push the price below the key support at $2,800/oz. The first resistance is at $2,920/oz, followed by $2,942/oz. The first support is at the overnight low of $2,866.3/oz, followed by $2,850/oz.
Gold CFDs at Critical Juncture: $2,800–$2,900 Range Dictates Xauusd "Gold" is bullish in long term but in short tem it will be more downward and short positions are strong we have to trade accordingly. As it has break the trend line and make some candles in downward so we have to take proper entry for short time.
Wait for a confirmed breakout/breakdown before committing to larger positions. Scalping is viable if price oscillates within the $2,800–$2,900 range.
Gold is in an extremely strong setupWhile a weaker USD is the main driver pushing gold prices higher, this stems from two factors, including tariff concerns and January's Producer Price Index (PPI) report.
Anxiety continues to increase after US President Donald Trump's announcement of imposing reciprocal tariffs on countries that tax imports from the US. Besides, the US has just released the January PPI index, showing that producer prices increased by 0.4% this month.
"Gold is in an extremely strong setup. As the USD strengthens, we are seeing a surge in gold buying from Asia, including central banks, retail investors, and financial funds."
People still want to invest in gold.World gold prices at times dropped sharply when inflation data in the US heated up. Specifically, the consumer price index (CPI) in January 2025 increased by 0.5%, higher than the forecast increase of 0.3%.
This information has reinforced the message of the US Federal Reserve (FED) not to rush to reduce interest rates due to the unstable economy.
"Higher-than-expected CPI in the US put pressure on gold prices and market expectations for any interest rate cuts were almost extinguished."
The recovery of world gold prices from lows in the past two days shows that investors continue to favor having a safe asset to combat inflationary pressures.