Gold Nears Record Levels on Softer US Monetary Policy

Gold traded around $2,450 per ounce on Thursday, following a 1.6% increase in the previous session and staying near record highs. This stability comes during expectations of a more accommodating US monetary policy and increased safe-haven demand. The Federal Reserve, as widely anticipated, kept interest rates unchanged on Wednesday, indicating that recent economic trends—such as progress in cooling consumer prices and a weakening labor market—support a less restrictive monetary stance. Additionally, rising tensions in the Middle East are enhancing gold's appeal as a safe-haven asset. The situation in the Middle East intensified following the assassination of Hamas leader Ismail Haniyeh in Tehran, which came shortly after Israel claimed responsibility for an airstrike that killed Hezbollah's top commander in Beirut. In retaliation, Iran issued a strong statement, promising that Israel would pay a heavy price.

Before the important data releases, gold remains in a sideways trend, with the first support level at 2,430. If this level is breached, the next supports to watch will be 2,413 and 2,390. On the upside, the initial resistance is at 2,458; if this level is surpassed, the next targets will be 2,475 and 2,490.