Recent hawkish comments from Fed officials, such as Philadelphia Fed President Patrick Harker’s preference for a “slow, methodical approach,” have tempered expectations for aggressive monetary easing.
The dollar, although lower, remains near a three-month high. Strong U.S. economic data and concerns over the pace of rate cuts continue to bolster the currency.
Rodrigo Catril, senior FX strategist at National Australia Bank, highlighted the market’s nervousness around Fed policies and the ongoing strength in the U.S. economy. In turn, this has put additional pressure on currencies like the yen, which weakened to 153.19 per dollar on Wednesday, the lowest since late July.
Market Forecast: Bullish Outlook Underpinned by Risks
While technical signals hint at potential corrections, the broader geopolitical and economic landscape supports a bullish outlook for gold prices in the short term. Persistent global uncertainties, central bank demand, and the expectation of further monetary easing continue to buoy gold’s appeal.
Any downward movement could be short-lived, with strong support likely near the $2680 mark. A break above $2758.53 would confirm a bullish continuation, while the market remains sensitive to evolving U.S. election risks and Fed policy signals. Traders should remain vigilant for key technical levels and global developments in the coming days.
