Gold Prices Reach Third Straight Weekly Gain Amid Rate Cut Hopes

Gold prices are experiencing their third consecutive weekly gain, driven by expectations of U.S. Federal Reserve interest rate cuts and ongoing geopolitical tensions.

The probability of a Fed rate cut in September has increased to around 70% according to CME FedWatch, up from 50% a month ago.

Central banks have continued to diversify their reserves away from the U.S. dollar, with emerging markets purchasing 290 metric tons of gold in the first quarter of 2025, a 5% increase year-over-year.

Techinical analysts note that gold has broken above its 50-day moving average, a bullish signal, and immediate resistance is seen at $2,400 per ounce.