Jakarta. Global gold prices are expected to stay in a bullish trend next week, supported by growing expectations of US Federal Reserve rate cuts and escalating geopolitical tensions that have boosted safe-haven demand.

After nine consecutive weeks of gains, gold prices faced selling pressure this week, ending in negative territory. A wave of profit-taking early in the week triggered the metal’s steepest single-day drop in years.

On Monday, spot gold briefly hit a record high of $4,355 per troy ounce before retreating. By Friday, the price had slipped more than 3 percent to $4,118.29 per ounce.

In Indonesia, Aneka Tambang’s gold bar price also fell Rp 4,000 to Rp 2.35 million per gram on Saturday, after a sharp increase of Rp 33,000 per gram the previous day.

According to Andy Nugraha, analyst at Dupoin Futures Indonesia, dovish remarks from several Fed officials have fueled buying interest in gold. Markets now anticipate the Fed will start cutting interest rates soon, weighing on the US dollar and real yields, historically strong drivers of gold prices.

“When interest rates fall, the opportunity cost of holding non-yielding assets like gold declines, prompting investors to increase their long positions,” Andy said in a research note.

He added that the metal’s bullish outlook remains intact as long as prices stay above the key support level of $3,802 per troy ounce. “The main projection now shows potential for gold to rise toward $4,500 per ounce in the near term. However, if prices break below $3,802, a correction could push them down to around $3,628,” he said.

Fundamentally, Andy views gold as an attractive diversification asset for both institutional investors and central banks. Mounting geopolitical risks, inflation concerns, and waning confidence in the US dollar have strengthened the case for gold accumulation.

Recent data also show several central banks are still adding to their gold reserves to bolster foreign exchange buffers and reduce dependence on the dollar. “This trend reinforces the long-term bullish outlook for gold,” Andy added.