5 September 2025,05:56
Daily Market Analysis
5 September 2025, 05:56
Key Takeaways:
*Gold broke above $3,500/oz, fueled by safe-haven demand amid global bond selloffs and rising fiscal sustainability concerns.
*Softer U.S. labor data reinforced expectations of a September Fed rate cut, weakening the dollar and boosting gold’s appeal.
*Fiscal worries and monetary easing keep upside risks intact, with U.S. payrolls data seen as the next key catalyst.
Market Summary:
Gold climbed to unprecedented levels this week, breaching the $3,500 per ounce mark as intensifying safe-haven demand and shifting interest rate expectations propelled the metal deeper into record territory. The rally was fueled by a sharp selloff in global sovereign bond markets, where yields on long-term government debt in the U.K., France, and Japan surged to multi-year highs, reflecting mounting investor anxiety over fiscal sustainability and soaring public debt levels.
Parliamentary debates across major economies highlighting strained government budgets have further amplified concerns, driving capital into non-yielding assets like gold as a store of value amid financial uncertainty.
Concurrently, expectations for Federal Reserve policy are tilting increasingly dovish. Markets are now pricing in a high probability of the Fed initiating its first rate cut of 2025 at the upcoming September meeting—a sentiment reinforced by recent softer U.S. labor market data. This shift has pressured the U.S. dollar, enhancing the appeal of dollar-denominated gold for international investors.
The confluence of deteriorating sovereign credit sentiment, anticipations of monetary easing, and broad-based risk aversion has cemented gold’s role as a preferred safe haven. Should ongoing fiscal concerns persist and central banks maintain an accommodative stance, further gains remain well-supported.
Market participants now await key U.S. employment data for additional confirmation of the Fed’s policy trajectory. A soft print could extend gold’s record run, while stronger figures may prompt a short-term consolidation.
GOLD, H4:
Gold extended its rally this week, advancing more than 3% to reach a fresh all-time high of $3,578.50, as sustained safe-haven demand and dovish shifts in global monetary policy continued to fuel inflows into the metal. The precious metal briefly underwent a minor technical retracement but found strong support near near-term liquidity zones, promptly rebounding to reaffirm its underlying bullish structure.
Despite this robust price performance, momentum indicators are flashing signs of potential near-term fatigue. The Relative Strength Index has retreated from overbought territory, suggesting that the pace of upward movement may be slowing. Meanwhile, the Moving Average Convergence Divergence has generated a bearish crossover—often referred to as a “death cross”—at elevated levels, indicating that near-term momentum may be diverging negatively from price.
Resistance level: 3590.50, 3655.00
Support level:3510.00, 3430.00
Step into the world of trading with confidence today. Open a free PU Prime live CFD trading account now to experience real-time market action, or refine your strategies risk-free with our demo account.
This content is for educational and informational purposes only and should not be considered investment advice, a personal recommendation, or an offer to buy or sell any financial instruments.
This material has been prepared without considering any individual investment objectives, financial situations. Any references to past performance of a financial instrument, index, or investment product are not indicative of future results.
PU Prime makes no representation as to the accuracy or completeness of this content and accepts no liability for any loss or damage arising from reliance on the information provided. Trading involves risk, and you should carefully consider your investment objectives and risk tolerance before making any trading decisions. Never invest more than you can afford to lose.
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Trading Platforms
Learn
About PU Prime
Corporate
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Thank You for Your Acknowledgement!
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
Thank You for Your Acknowledgement!
