<\/p>\n
Gold (XAU\/USD) is trading under renewed selling pressure on Wednesday, retreating after reaching a record high of $3,791 the previous day. At the time of writing, XAU\/USD is trading near $3,735, easing from an intraday high of $3,779, as traders weigh the Federal Reserve\u2019s (Fed) cautious stance on the path of monetary policy easing.<\/p>\n
A rebound in the US Dollar (USD) and rising Treasury yields are capping upside attempts in Gold, though market bets remain firm on the prospect of additional interest rate cuts before year-end following last week\u2019s 25-basis-point (bps) reduction. Persistent geopolitical tensions and the broader fundamental and technical outlook continue to cushion downside risks, keeping dip-buyers engaged even as momentum stalls near record territory.<\/p>\n
Fed Chair Jerome Powell<\/a>, speaking in Washington on Tuesday, stuck to his familiar script, stressing that monetary policy remains “data-dependent\u201d and that \u201cthere is no preset path\u201d for future interest rate decisions. He acknowledged that the balance of risks has shifted, with downside threats to employment rising, but cautioned that easing too aggressively could leave \u201cthe inflation job unfinished.\u201d<\/p>\n Looking ahead, the Fed\u2019s dual mandate presents a delicate balancing act, though the tilt is increasingly toward safeguarding the labor market. Progress toward the 2% inflation goal appears to be stalling, but upside risks to prices are not materializing yet. With policy still firmly in restrictive territory, keeping rates<\/a> elevated for too long risks inflicting unnecessary damage on employment, suggesting the Fed\u2019s bias should lean dovish even as it moves cautiously.<\/p>\n XAU\/USD<\/a> marked a fresh all-time high at $3,791 before slipping into a consolidative phase, with buyers successfully defending the $3,750 level so far. While the broader bullish structure remains intact, momentum indicators<\/a> are showing early signs of exhaustion, suggesting the market is digesting recent gains after an overextended rally.<\/p>\n On the downside, $3,750 is the immediate pivot, followed by the $3,700 psychological mark. A break below $3,700 would risk a change in market structure and open the door to a deeper corrective pullback. For now, however, the metal continues to trade comfortably above both short and medium-term moving averages, underscoring the strength of the prevailing uptrend.<\/p>\n On the upside, the all-time high at $3,791 and the psychological $3,800 mark stand as key resistance levels. A sustained break higher would reaffirm the uptrend, while a failure to build momentum would leave Gold vulnerable to a period of consolidation before the next directional move.<\/p>\n Gold has played a key role in human\u2019s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn\u2019t rely on any specific issuer or government.<\/p>\n<\/section>\n <\/p>\n Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country\u2019s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.<\/p>\n<\/section>\n <\/p>\n Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.<\/p>\n<\/section>\n <\/p>\n The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU\/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up. <\/p>\n<\/section><\/div>\n<\/p><\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":" Gold pauses its record-breaking run after setting a fresh all-time high at $3,791. Fed\u2019s cautious stance and a firmer US Dollar cap upside, while geopolitical tension and rate-cut expectations cushion downside. Market focus shifts to upcoming US data and Fed commentary, with PCE inflation on Friday in the spotlight. Gold (XAU\/USD) is trading under renewed […]<\/p>\n","protected":false},"author":2,"featured_media":396717,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,484,255,250,252,247,253,249,5212,308,256,254,485],"class_list":["post-406113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gold","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-seo","tag-technical-analysis","tag-wallet","tag-wordpress","tag-xauusd"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/406113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=406113"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/406113\/revisions"}],"predecessor-version":[{"id":406114,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/406113\/revisions\/406114"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/396717"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=406113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=406113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=406113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Market movers: Fed caution lifts Dollar, US government shutdown fears grow<\/h2>\n
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Technical analysis: XAU\/USD consolidates below record highs<\/h2>\n
Gold FAQs<\/h2>\n