After gold prices were supported and rebounded to the 435x area following the Fed’s interest rate cuts, investors have now begun to take profits and adopt a more cautious stance ahead of the Nonfarm Payrolls report to be released later tonight.
This is the reason why gold prices have traded sideways over the past two days, fluctuating within a wide range of 428x–435x USD/ounce.
Equities and cryptocurrencies have also seen sharp corrections over the last two days, indicating that capital is rotating back into the safe-haven investment channel of gold.
This suggests that since the Fed began cutting interest rates, a “super bullish” scenario for gold has been set in motion, and tonight’s NFP report could potentially be the final trigger of 2025, driving gold to break above its previous highs and reach new record levels of 4,500–4,700 USD/ounce.
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