Gold price 0.46% shy of record high as U.S. dollar dips to monthly low
Gold has now achieved a year-to-date gain of 5.8%
Gold prices are on a remarkable trajectory, with a 0.8% gain added during the Asian session on Friday, January 24, 2025, as it resumes its uptrend from a modest slide on Thursday.
This move has positioned the precious metal for its fourth consecutive weekly gain, marking the largest weekly increase since November 2024. As gold continues its upward journey, it has now achieved a year-to-date gain of 5.8% and is just 0.46% away from its all-time high of $2,790, last seen in October 2024.
This recent surge in gold prices can be traced back to several key economic indicators, such as a decline in U.S. Treasury bond yields. This drop was in response to comments from U.S. President Donald Trump, who expressed a preference for avoiding tariffs on China. The prospect of further policy easing by the Federal Reserve has also contributed to the US Dollar's fall to a fresh monthly low, enhancing gold's appeal as a non-yielding asset.
Gold price dynamics (October 2024-January 2025). Source: TradingView.
Gold price gains but RSI signals overbought levels
Moreover, investor concerns about potential economic fallout from Trump's protectionist policies have driven more capital towards gold as a safe-haven investment. Despite this bullish trend, the equity markets' positive tone might restrain traders from taking new long positions in gold, especially given the overbought conditions observed on both short-term 4-hour and intermediate daily charts according to the Relative Strength Index (RSI) indicator.
Looking forward, gold is set to continue its upward trend, as traders gauge potential impact from the flash global Purchasing Managers' Index (PMI) for short-term trading opportunities. With gold only a fraction away from its record high, the market is watching closely for any signs that could push gold past this significant threshold.
Strong bullish momentum in January drove gold prices up 4.8%, nearing the all-time high of $2,790. Consistent demand pushed gold toward its fourth consecutive up-close day.
