The Fed Signals Could Lift Prices Above $3,700?
Global gold prices corrected slightly from a two-week peak on Monday (August 25th), falling around 0.2% to US$3,364.29 per ounce.
This decline was triggered by a strengthening US dollar, which made gold relatively more expensive for non-dollar buyers. However, fundamentally, the gold outlook remains solid. Investors assess an 87% chance of a Fed rate cut at its September meeting, following Fed Chairman Jerome Powell's dovish signal at the Jackson Hole symposium.
Several major banks are also growing more confident in their medium-term outlook: RBC projects gold prices could potentially reach US$3,722 by the end of 2025, even reaching US$3,813 by mid-2026, while Goldman Sachs has set an optimistic target of US$3,700–4,000.
Technically, the gold trend remains positive despite experiencing some consolidation. The RSI and MACD indicators in the Asian market indicate bullish momentum, with strong support around US$3,245 and resistance at US$3,435.
If this resistance is successfully broken, further upside is possible, reaching the target of US$3,735. Combined with the Fed's dovish fundamentals and bullish projections from major financial institutions, gold remains on a positive path as a primary hedge against global uncertainty. (mrv)
Source: Newsmaker.id
