Gold keeps climbing. For the second day in a row, XAU/USD is pushing higher, now sitting just below $4,150—a level it hasn’t touched in about a week. What’s behind the move? It comes down to the Fed. Traders are betting more heavily on a rate cut in December, and that’s weighing on the US Dollar. When the Dollar loses steam, gold usually finds more buyers. That’s exactly what’s happening, and the bullish mood around gold isn’t going anywhere.
Fed Hints at Easing, Gold Gets a Boost
Fed officials have been dropping hints about loosening up on rates. New York Fed President John Williams made it clear: cutting rates wouldn’t hurt their progress on inflation. Fed Governor Waller pointed to a softer labor market that could use a little help. Markets have picked up on these signals. According to CME FedWatch, there’s now nearly an 80% chance the Fed will cut rates in December. As the Dollar stumbles, gold finds even more support—buyers are feeling confident.
Geopolitical Tensions Keep Gold in Demand
It’s not just the Fed keeping gold afloat. Tensions overseas aren’t letting up. Fresh Russian attacks on Kyiv and the ongoing mess in the Middle East keep nerves on edge. News of more ceasefire violations in Gaza only adds to the uncertainty. Even with stocks holding up, these risks have investors looking for safety—and gold is still a favorite safe haven. That steady demand is helping gold avoid any real pullback.
Eyes on US Data for the Next Move
Traders aren’t taking their eyes off the ball just yet. Some key US economic numbers are coming up—the delayed Producer Price Index, Retail Sales, and housing stats. These will steer the Dollar and set the tone for gold’s next move in the short term. On the charts, gold still looks solid. Prices are holding above key trendlines and EMAs, so another run at $4,178–$4,200 looks possible. If prices slip back toward $4,110–$4,100, expect buyers to step in again.
