Gold News: Bullion Near Record Highs as Fed Easing Fuels Gold Price Future

Gold prices forecast stays bullish as Fed rate cut fuels momentum

Spot gold (XAU/USD) ended the week on a firm footing, closing Friday near record territory and setting up for its fifth consecutive weekly gain. Traders continue to weigh the Federal Reserve’s policy stance, with fresh all-time highs still in play as lower rates bolster the metal’s appeal.

Fed rate cut drives gold higher

The U.S. Federal Reserve cut its benchmark rate by 25 basis points on Wednesday, the first reduction this year. While policymakers warned about persistent inflation, the decision reinforced expectations of further easing ahead.

Spot gold spiked to an intraday record of $3707.56 on September 17 before easing into Friday’s close at $3338.72, up $35.57 or +1.08%.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion, a key reason why gold has rallied nearly 40% this year. Minneapolis Fed President Neel Kashkari signaled that additional cuts are likely at the central bank’s next two meetings, keeping the macro backdrop favorable for precious metals.

Technical picture shows support and risk levels

The near-term swing chart target sits at $3879.64, though traders note that a strong catalyst may be needed to drive the market that high quickly. On the downside, minor pivot support stands at $3660.20, with a new bottom at $3627.96. A break below that would turn the short-term trend bearish.

Additional support levels are clustered at $3612.83, $3609.65, and deeper at $3511.75–$3500.20. The 50-day moving average at $3436.02 remains the major trend indicator.

Physical demand sends strong signals

Physical gold premiums in India climbed to a 10-month high as festival buying continued despite record prices, signaling strong investor conviction. In contrast, Chinese buyers faced wider discounts, with spreads reaching a five-year peak. The divergence highlights regional differences but underscores broad demand strength as bullion holds near highs.

Market forecast for gold prices

Gold remains firmly underpinned by Fed easing, robust physical demand, and investor positioning. While profit-taking could trigger dips toward the $3600 handle, the broader trend stays bullish with upside potential toward $3879.64 and beyond. Analysts point to $4000 as a realistic upside target should rate cuts accelerate and inflation risks persist. Traders should monitor support at $3627.96 closely, as a break could shift momentum to the downside.

More Information in our Economic Calendar.