Gold is trading at new historical levels

New record levels

Gold prices jumped to unprecedented levels with the beginning of trading on Monday, where the price per ounce reached 3720 dollars, supported by investors ' anticipation of US inflation data and comments by Federal Reserve officials that may determine the features of monetary policy during the coming period.

The impact of US monetary policy

This rise comes on the heels of the Fed's decision last week to cut interest rates for the first time this year, with a hint of further cuts ahead due to weak labor market indicators.

Financial markets are currently expecting two additional interest rate cuts of 25 basis points during the current year, one expected in October and the other in December.

Multiple ascent engines

Gold's rise is not limited to monetary factors only, the yellow metal is experiencing multi-source support:

- Safe haven demand: due to ongoing geopolitical tensions and fears of the impact of tariffs imposed by President Trump.

- Central bank purchases: global financial institutions continue to strengthen their gold reserves.

- Investment fund flows: which record continuous flows towards gold-backed ETFs.

Analysts forecasts and market trends

For example, Citi Research analysts in their latest reports indicate a continuation of the upward trend of the gold market, supported by two main factors:

- Cyclical factors: such as the continued weakness of the US labor market.

- Structural factors: namely, concerns about the independence of the US Federal Reserve.

The report confirms that all current factors point to the continuation of the strong performance of gold, with the expectation that the price per ounce will reach 3800 dollars during the next three months, especially in light of the rise that has exceeded 40% since the beginning of this year.

Any corrective decline in gold will be an opportunity to reposition buying positions in the short and medium term.