Gold prices (XAU/USD) kept climbing in Asian trading on Wednesday, holding steady above $4,200. The metal’s rally isn’t just momentum—it’s traders betting hard on another Fed rate cut next week. The weak US Dollar is making gold even more attractive, especially after Tuesday’s quick bounce from $4,164. Bulls are still in control, but let’s be honest, upbeat equity markets and mixed signals from other influencing factors are keeping a lid on any explosive upside.
Fed Rate-Cut Hopes and Geopolitics Keep Gold in Focus
Right now, most of Wall Street is convinced: the Fed’s about to slice rates by 25 basis points at the next FOMC meeting. The CME’s FedWatch Tool puts the odds at almost 90%. That’s a big reason the Dollar can’t catch a break, and it’s giving gold buyers plenty of confidence. On top of that, geopolitical risks haven’t gone anywhere. The Russia–Ukraine conflict drags on, peace talks keep stalling, and fresh threats from Moscow are making investors nervous. That’s classic safe-haven territory, and it’s pushing gold toward highs we haven’t seen since late October.
There’s also chatter about changes at the Fed, with Kevin Hassett’s name getting tossed around for leadership. That’s only added to the dovish mood. Still, with stocks rallying, gold’s upside feels limited—at least for now.
Traders Watch US Data as Gold Targets $4,250 and Higher
Everyone’s waiting for key US numbers: the ADP jobs report, ISM Services PMI, and the PCE Price Index, which the Fed watches closely for inflation signals. If gold can break through resistance at $4,245–$4,250, the path to $4,300 opens up, with some speed bumps at $4,265 and $4,278 along the way.
If prices slip below $4,200, don’t expect buyers to disappear. There’s strong support around $4,150, with backup at $4,100 and a technical floor between $4,075 and $4,073.
