Gold Price Analysis and Prediction Before & After the Fed's Rate Cut!
The global gold price (XAU/USD) remains near its record high, moving in the range of $3,630–$3,670 per troy ounce. Market sentiment next week will be heavily influenced by the Federal Reserve's (The Fed) decision regarding a benchmark interest rate cut, scheduled for its September meeting.
Before the Interest Rate Cut
Ahead of the official decision, gold prices are expected to remain stable with limited upside potential. The market is still awaiting final signals from the Fed while closely monitoring inflation and labor market data. Supported by a weakening PPI trend and rising jobless claims, gold has the potential to maintain its position above the $3,600–$3,630 support level. If geopolitical uncertainty intensifies, the price could test the resistance at $3,650–$3,670. However, a surprise rise in inflation risks triggering a stronger dollar, making gold vulnerable to a correction back to the $3,600 area.
After the Interest Rate Cut
If the Fed actually cuts interest rates by 25 basis points, gold prices could potentially receive a strong boost. A weakening dollar and lower bond yields will increase gold's appeal as a hedge. Short-term resistance targets are at $3,675–$3,700, with the potential to break through $3,750–$3,800 if the upward momentum continues. However, if the Fed's statement remains hawkish, gold's rally could be limited and trigger a correction to the $3,620–$3,630 range.
Overall, the outlook for gold next week remains positive, with the primary direction dependent on the Fed's policy decision and tone. Investors are advised to remain vigilant regarding high volatility, particularly around interest rate announcements.
Source: Newsmaker.id
