How to Invest in Gold: Six Options to Consider
Gold Forecast and News
Gold fails to build on Thursday gains, slumps below $3,200
Gold turns south and trades deep in negative territory below $3,200 after posting strong gains on Thursday. The renewed US Dollar (USD) strength forces XAU/USD to stay on the back foot as markets keep a close eye on headlines coming out of Russia-Ukraine talks.
Latest XAU/USD News
XAU/USD Technical Overview
From a technical perspective, the goodish recovery move from over a one-month low falters near the 200-period Simple Moving Average (SMA) on the 4-hour chart, around the $3,252-3,255 zone, amid still negative oscillators on the daily chart. This makes it prudent to wait for strong follow-through buying before confirming that the XAU/USD pair's downfall witnessed over the past week or so has run its course and placing fresh bullish bets.
In the meantime, weakness back below the $3,200 mark might now find some support near the $3,178-3,177 region. Some follow-through selling could make the Gold price vulnerable to accelerating the slide back towards the overnight swing low, around the $3,120 area. The downward trajectory could extend further towards the $3,100 mark en route to the next relevant support near the $3,060 region.
On the flip side, the $3,252-3,255 area might continue to act as an immediate hurdle. A sustained strength beyond might trigger a fresh bout of short-covering rally and allow the Gold price to reclaim the $3,300 mark. The latter should act as a pivotal point, which, if cleared decisively, could negate any near-term negative bias and shift the bias in favor of bullish traders, paving the way for further gains.
Fundamental Overview
Russian President Vladimir Putin didn’t attend the planned meeting himself and only sent some low-level diplomats, who were rather seen as Russia taunting and pestering Ukraine.
This spurred several world leaders to lash out at Russia, threatening with more severe sanctions to force President Putin to the negotiation table. Markets are bracing for comments from United States (US) President Donald Trump, who appears to be not amused with the scenery, according to Reuters.
Meanwhile, the US Dollar (USD) is being challenged by markets, which would be a tailwind for XAU/USD. Volatility “in US risk assets and the dollar will lead more international investors to consider hedging more of their dollar exposure and globally diversifying their asset allocations,” Mark Haefele, chief investment officer for the Swiss bank’s wealth management unit, said this week. “Gold remains an important diversifier,” Bloomberg reports.
Investors are looking for certainty in uncertain markets
Progress on trade negotiations between the US and China has also sapped appetite for haven demand, adding to bearish headwinds for Gold as the standoff between the world’s two largest economies led to a sharp rebound in risk assets this week, Reuters reports.
Investors need to diversify and hedge “to increase certainty about the value of their assets, especially when they have non-dollar liabilities coming due,” Mark Haefele, chief investment officer for the Swiss bank’s wealth management unit, said. “There doesn’t need to be a seismic shift in US exceptionalism for these trends to manifest themselves.”, Bloomberg reports.
Precious metals sector consolidations are facing some headwinds. A major Chinese Gold producer is scouting for acquisition opportunities worldwide, although the recent price volatility driven by global trade turmoil means it’s not rushing to secure deals, Bloomberg reports.
SPECIAL WEEKLY FORECAST
Interested in weekly XAU/USD forecasts? Our experts make weekly updates forecasting the next possible moves of the gold-dollar pair. Here you can find the most recent forecast by our market experts:
Gold: Buyers hesitate despite escalating geopolitical tensions Premium
Gold (XAU/USD) started the week on a bullish note and registered impressive gains on Monday and Tuesday before reversing its direction and settling above $3,300 in the second half of the week.
Latest XAU/USD Analysis
Editors' picks
EUR/USD stays in daily range near 1.1200 ahead of US data
EUR/USD struggles to find direction and fluctuates in a tight channel at around 1.1200 in the American session on Friday as investors await the next catalyst. The UoM Consumer Sentiment Index for May will be featured in the US economic calendar ahead of the weekend.
GBP/USD drops below 1.3300 on modest USD recovery
GBP/USD trades in the red below 1.3300 in the second half of the day on Friday. The Greenback regains its footing against the Pound Sterling on renewed optimism surrounding trade deals as market focus shifts to US consumer confidence data.
USD/JPY Price Forecast: Finds temporary support near 145.00
USD/JPY gains temporary ground near 145.00 as the US Dollar recoups initial gains. The Japanese economy contracted by 0.2% in the first quarter of the year. Investors await the flash US Michigan survey data for May.
Gold fails to build on Thursday gains, slumps below $3,200
Gold turns south and trades deep in negative territory below $3,200 after posting strong gains on Thursday. The renewed US Dollar (USD) strength forces XAU/USD to stay on the back foot as markets keep a close eye on headlines coming out of Russia-Ukraine talks.
WTI falls to near $61.00, weekly gains capped by global oversupply concerns
West Texas Intermediate Oil price continues its losing streak for the third successive session, trading around 61.10 per barrel during the early European hours on Friday. However, crude Oil prices are set for a modest weekly gain, supported by renewed optimism over United States-China trade relations, which outweighed ongoing concerns about global oversupply.
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XAU/USD YEARLY FORECAST
How could XAU/USD move this year? Our experts make a XAU/USD update forecasting the possible moves of the gold-dollar pair during the whole year. Don't miss our 2025 XAU/USD forecast!
XAU/USD 2025 FORECAST
In the XAU/USD 2025 Forecast, FXStreet analyst Eren Sengezer suggests Gold’s 2025 outlook depends on Federal Reserve (Fed) policy, Donald Trump’s decisions and geopolitics. A bearish scenario could unfold if geopolitical tensions ease, inflation remains persistent and United States-China trade tensions weaken China’s economy, reducing Gold demand. A hawkish Fed could also pressure prices.
On the bullish side, continued global policy easing, a recovering Chinese economy or escalating geopolitical conflicts could boost safe-haven flows into Gold, supporting its resilience and pushing prices higher.
Gold's technical outlook suggests weakening bullish momentum, with the RSI at its lowest since February and XAU/USD. Key support lies at $2,530-$2,500, with further declines potentially targeting $2,400 and $2,300. On the upside, resistance at $2,900 could limit gains, with additional barriers at $3,000-$3,020 and $3,130 if Gold attempts a new record high.
MOST INFLUENTIAL FACTORS IN 2025 FOR XAU/USD
In 2025, Gold's outlook will be shaped by the US Federal Reserve’s monetary policy, geopolitical tensions and central bank demand. If geopolitical tensions, such as the Russia-Ukraine conflict or Middle East issues, de-escalate, Gold may face downward pressure after benefiting from these crises in 2024. Central bank demand will also be crucial and any slowdown in buying could weigh on prices.
About Gold
Gold (XAU/USD)
In the Forex market, Gold functions as a currency. The particularity of Gold is that it is traded against the United States Dollar (USD), with the internationally accepted code for gold being XAU.
Known as a safe-haven asset, Gold is expected to appreciate in periods of market volatility and economic uncertainty. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. The United States is the country that holds the biggest resources of Gold in the world.
The XAU/USD pair tells the trader how many US Dollars are needed to purchase one troy ounce of Gold.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold prices escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher borrowing costs usually weigh on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars. A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
ORGANIZATIONS THAT INFLUENCE XAU/USD
- WGC (World Gold Council) is the market development organization for the Gold industry. Its aim is to stimulate and sustain demand for the precious metal.
- LBMA (London Bullion Market Association) is an organization whose members participate in this wholesale over-the-counter market for trading Gold and Silver. It is loosely overseen by the Bank of England. Most LBMA members are major international banks, bullion dealers, and refiners.
- COMEX (Commodity Exchange) is the primary market for trading metals. The COMEX merged with the New York Mercantile Exchange (NYMEX) in 1994 and joined the CME Group in 2008.
- CGSE (Chinese Gold and Silver Exchange Society) is an organization of Gold trading firms in Hong Kong that are participants of the Chinese Gold and Silver Exchange, the first exchange in Hong Kong.
- Central banks like the Federal Reserve (Fed), the European Central Bank (ECB) or the People’s Bank of China (PBoC) significantly influence Gold prices through their monetary policies.
PEOPLE THAT INFLUENCE XAU/USD
- Neal Froneman, the World Gold Council’s Chairman.
- Scott Bessent, the US Treasury Secretary.
- Xi Jinping, President of the People's Republic of China.
- The London Bullion Market Association members.
CIRCUMSTANCES THAT INFLUENCE XAU/USD
The main variables traders should monitor to understand Gold’s position are:
- Demand and supply: The balance between global Gold demand and its availability impacts its price.
- Economic uncertainty and currency devaluation: Gold is widely known as a safe-haven asset for investors in periods of economic uncertainty or when a currency faces devaluation.
- Practical applications: The use of Gold in technology innovations, jewelry manufacturing and other industrial applications.
ASSETS THAT INFLUENCE XAU/USD
- Currencies: The US Dollar (USD) and the Euro (EUR) are the primary currencies influencing Gold prices. Other important currency pairs include EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, and USD/CAD.
- Commodities: Silver and Gold are the most important precious metal commodities.
- Bonds: Influential fixed-income securities include the German Bund (a federal government-issued bond) and the US Treasury Note (T-Note).
- Indices: Key indices related to Gold and mining include the HUI (NYSE Arca Gold BUGS), the XAU (Philadelphia Gold and Silver Index) and the GDM (NYSE Arca Gold Miners Index).
- Exchanges: The most important stock exchanges for Gold are the New York Mercantile Exchange (COMEX), the Chicago Board of Trade, the Euronext/LIFFE, the London Bullion Market, the Tokyo Commodity Exchange, the Bolsa der Mercadorias e Futuros and the Korea Futures Exchange.
