Gold (XAUUSD) corrects after record peaks, but demand for the precious metal remains strong

XAUUSD prices are declining after rebounding from the 2,950 USD resistance level. Find more details in our analysis for 25 February 2025.

XAUUSD forecast: key trading points

• Global economic risks remain high, fuelling the upward momentum in Gold
• All eyes are on the release of the US PCE price index
• Investors expect the Federal Reserve to postpone an interest rate cut
• XAUUSD forecast for 25 February 2025: 2,970 and 3,000

Fundamental analysis

XAUUSD prices are edging down today after reaching a record high on Monday. Demand for the precious metal remains as investors seek safe-haven assets amid market uncertainty. Gold was additionally supported by substantial inflows into the world’s largest gold-backed exchange-traded fund. Experts note that as long as global economic risks remain high, XAUUSD will maintain its upward momentum.

A crucial factor for the market will be the release of the US PCE price index on Friday, which is a key inflation gauge for the Federal Reserve. Most economists expect the Federal Reserve to postpone rate cuts until the next quarter despite forecasts of a potential policy easing as early as March.

XAUUSD technical analysis

XAUUSD prices continue to move within the uptrend. Buyers failed to overcome the key resistance level at 2,950 USD. The current correction allowed the sellers to gain a foothold below the EMA-65 line, but the bullish pressure remains.

The XAUUSD forecast for today suggests a test of the lower boundary of the ascending channel at 2,925 USD. If prices rebound from this level, they could rise to 2,970 USD, where they will encounter resistance at the upper boundary of the bullish channel. A breakout above this level could increase the upward momentum and open the way to 3,000 USD, signalling further development of the bullish trend.

Summary

Despite the correction, Gold maintains its upward trajectory amid high economic risks and expectations of the Federal Reserve postponing a rate cut. The XAUUSD price forecast suggests a correction towards 2,925 USD, followed by growth to 2,970 USD and then to 3,000 USD.