Gold Performance Recap for the week📝This week, the price of Gold first rose and then fell. The specific trend is as follows:
Monday: Gold broke through the 4059 mark in the Asian trading session, setting a new historical record
Tuesday- Wednesday: The price continued to rise.
Thursday: Gold reached a maximum of 4298.64.
Friday: First, the price surged after the opening, reaching a high of 4379.44, followed by a sharp decline, touching a low of 4186.17. As of now, the price of Gold is 4247.02, continuing to fall compared to the previous day's closing price.
💎The driving factors are as follows:
💡Upward factors in the early stage
1-Impact of Federal Reserve's loose policy expectations: The Federal Reserve launched a new round of interest - rate - cutting cycle in September. The market anticipates that there may be two consecutive interest - rate cuts in October and December. The expected decline in both nominal and real interest rates has increased the attractiveness of holding non - interest - bearing assets such as gold.
2-Surge in geopolitical risks and safe - haven demand: Factors such as the escalation of the China-US trade war and the US's containment of China's chip sector have intensified market panic, and funds have accelerated their inflow into gold as a safe haven.
3-Drive from global central banks’ gold purchase demand: According to data from the World Gold Council, global central banks’ gold reserves increased by 166 tons in the second quarter of 2025. The People’s Bank of China has increased its gold holdings for 11 consecutive months, which has strengthened market confidence in gold.
💡Downward factors in the later stage:
1-Technical level: The 4280 - 4330 area is a key monthly - level resistance zone. On Friday, Gold broke through the important support level of 4280, triggering a large number of stop-loss orders for long positions. Program based trading triggered SL selling, forming a vicious cycle of "breakdown - SL - further decline".
2-Change in risk appetite: On Friday, US President Trump made moderate remarks on trade issues. Market safe-haven sentiment cooled rapidly, leading to a sharp sell-off of gold.
