Are Interest Rate Cuts Still Supporting Gold's Movement?
Global gold prices rose slightly in trading on Friday (September 19), driven by a combination of positive fundamental and technical sentiment. The interest rate cut by the United States central bank (The Federal Reserve) was the main driver of the precious metal's rise, despite earlier hawkish comments from Jerome Powell that had caused a correction.
From a fundamental perspective, the Fed cut its benchmark interest rate by 25 basis points in its latest meeting, signaling that its monetary easing policy would likely continue until the end of the year. This move lowered the opportunity cost of holding gold, increasing the appeal of this safe-haven asset.
"Expectations of further interest rate cuts have driven investors to hedge assets like gold," said a commodity analyst, quoted by Reuters.
Demand for gold from global central banks also continues to support price increases. Deutsche Bank even recently raised its 2026 gold price projection to nearly US$4,000 per troy ounce, reflecting a bullish long-term outlook.
From a technical perspective, gold's medium-term trend remains bullish. The price is currently hovering around US$3,650 per troy ounce, approaching the psychological level of US$3,700. The nearest support level is around US$3,620, while resistance is in the US$3,680–3,700 area. If the price can break through this level with high volume, the potential for an increase towards US$3,720–3,750 is wide open.
Technical indicators such as the 20-day Moving Average and the RSI support an upward bias, although a short-term technical correction is possible if investors take profits.
Overall, the outlook for gold prices today remains positive as long as prices remain above key support levels. Market participants are advised to closely monitor upcoming US economic data, including inflation and employment figures, which could influence the direction of the Fed's policy and future gold price movements.
Source: Newsmaker.id
