XAU/USD Bullish: Credit Agricole Sees Gold Support Through H1 2025

Gold prices remain strongly supported with XAU/USD trading near $2,730, according to Credit Agricole's latest analysis projecting continued strength through the first half of 2025. The bank identifies four primary drivers sustaining the precious metal's rally: currency debasement hedging as investors seek protection against fiscal concerns in the US, Japan, and Europe; heightened safe-haven demand amid geopolitical uncertainties; central bank accumulation patterns; and persistent inflation hedging requirements. The analysis suggests gold's correlation with major forex pairs, particularly USD weakness, will continue driving demand. Technical levels show strong support at $2,680-$2,700, with resistance emerging near $2,750-$2,780. For forex traders, sustained gold strength typically correlates with USD weakness, potentially supporting EUR/USD, GBP/USD, and other major pairs against the dollar. The outlook implies continued pressure on USD pairs as investors maintain defensive positioning through precious metals.