Gold's Range Narrows, Ready to Explode?
Gold prices (XAU/USD) held steady after dip-buying emerged in the $3,627–$3,626 area during the Asian session, although there was no further momentum. A weakening US dollar—pressured by rising bets for a Fed rate cut—remained a support for the yieldless precious metal. Geopolitical tensions also maintained interest in safe-haven assets.
However, market participants are tending to wait and see. This week is packed with central bank decisions—the Bank of England, Bank of England, the Fed, and the Bank of Japan—with the primary focus on the outcome of the two-day FOMC meeting. Investors are awaiting clues on the Fed's next rate cut path, which will move the USD and provide a new direction for gold prices.
Fundamentally, the short-term bias remains positive thanks to the weak USD, but lacks "bullish conviction" as prices remain locked in a week-long range. Buyers are emerging at the bottom, but a strong catalyst is needed for the rally to continue—and that will likely come from the Fed's policy tone.
Looking ahead, the scenario is simple: more dovish (continued rate cut signals) → USD could weaken further → gold has a chance to rise; more cautious/hawkish → USD could potentially bounce → gold is vulnerable to correction. The next direction will be largely determined by the dot plot and Chairman Jerome Powell's communication.
Key points:
Gold is stable at $3,627–$3,626, still within a one-week range.
The USD is weakening on expectations of Fed easing; geopolitics favor safe-haven assets.
The market is awaiting the BoC, BoE, Fed, and BoJ; focusing on the FOMC and the dot plot.
Dovish → bullish for gold; hawkish → correction likely.
Source: Newsmaker.id
