Gold futures are currently at $3,343.8, and tradeCompass shows a bullish area for potential long trades. The upward trend will continue unless prices drop below the bearish threshold of $3,335.5. Bullish targets are set between $3,349.6 and $3,407, while bearish targets range from $3,329.1 to $3,326.4. Today’s market remains bullish as long as prices stay above $3,342, with buyers in control. Over the past year, gold has increased by 34.29%, though it dipped by 0.70% in the past week. The overall long-term trend is positive, driven by a rise in gold demand, which grew by 3% in Q2 2025 to 1,249 tonnes, largely due to a 78% increase in investment demand.

Market Insights And Trends

The VWAP and Point of Control provide important insights into market consensus and possible trend changes. TradeCompass advises disciplined trade management, including adjusting stop-losses and entering single trades per direction. Recent market shifts, such as increased demand in Asia and changes in central bank policies, impact gold’s long-term outlook, indicating a complex demand situation. Currently, there’s a clear bullish bias as long as gold futures remain above $3,342. Traders should look for long entries, aiming for a profit target at $3,349.6. If the upward momentum continues, a move towards the key psychological level of $3,400 seems likely in the next few weeks. We must stay disciplined, though, as a break below $3,335.5 would change the bullish outlook. If that occurs, focusing on a short trade targeting $3,329.1 becomes essential. This quick shift in strategy is vital for managing risk in a market that has recently cooled down slightly. The broader trend strongly supports a rise, with gold up over 26% since early 2025. This powerful bull run is driven by major changes in monetary policy. The Federal Reserve has initiated two rate cuts this year, which typically weakens the dollar and boosts gold prices.

Inflation And Monetary Policy

The latest inflation data for July 2025 shows that the Consumer Price Index (CPI) remains steady at 3.1%, keeping real yields low. This scenario makes non-yielding gold more appealing for investors looking to preserve wealth. Ongoing inflation suggests ongoing demand for gold as a hedge. Additionally, the World Gold Council’s Q2 2025 demand report revealed a 78% rise in investment buying. Although central bank purchases have slowed from 2024’s record levels, they still added 166 tonnes, solidifying market support. This indicates that while one major driver has eased, another has accelerated. For derivative traders, this environment is ideal for buying call options with strike prices at or above the $3,400 target. Selling out-of-the-money put options below the bearish threshold of $3,335.5 can also be a good strategy for collecting premiums, allowing us to take advantage of the bullish trend while managing risk. Looking ahead, we should view any dips toward the $3,342 support level as opportunities to increase long positions. The main risks to this outlook include an unexpected hawkish shift from the Federal Reserve or a sudden resolution of global geopolitical tensions. Therefore, we’ll keep a close watch on Fed communications and economic data. Create your live VT Markets account and start trading now.

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