Gold extended its record rally for a third day, climbing above $3,650 in Tuesday’s Asian session. The surge is driven by Fed cut bets after weak U.S. jobs data, with markets pricing in up to three reductions this year.
The weaker dollar, along with political instability in Japan and France, increased safe-haven demand. Momentum remains strong, though overbought conditions could cap gains ahead of U.S. inflation data (PPI Wednesday, CPI Thursday).
EUR/USD trades near 1.1700 in Wednesday’s Asian session, extending a 0.5% drop from the previous day. The U.S. Dollar found support despite markets pricing over 93% odds of a 25 bps Fed cut next week. Focus turned to labor data revisions, with the March 2025 NFP benchmark expected to show 911,000 fewer jobs, highlighting labor market weakness.
Attention now shifts to U.S. inflation releases, with August PPI due Wednesday and CPI on Thursday, key for shaping the Fed’s next move.
Gold held near $3,620 in Wednesday’s Asian session, pausing after a pullback from record highs. Expectations of Fed rate cuts this year continue to support demand, alongside trade uncertainty and political tensions in France and Japan. A stronger U.S. dollar and upbeat equities may cap gains, with focus now on the PPI report.
Gold is currently facing resistance around $3,670, with strong support near $3,615.
Gold eased after touching an all-time high of $3,675 this week as some profit-taking set in.
The focus now shifts to today’s August U.S. CPI report, which could shape the metal’s next move. Confirmation of expectations for three Fed rate cuts this year may drive gold toward new highs, while a stronger inflation reading could lessen the chances of more aggressive easing next week.
Gold nears $3,640 on Friday, marking a fourth weekly gain, driven by Fed rate cut expectations and safe-haven demand. U.S. inflation matched forecasts after a PPI drop, while jobless claims hit a four-year high, highlighting labor weakness. Markets price in a 25 bps cut, with speculation of 50. Geopolitical tensions, including U.S. tariff pressure on India and China, Middle East conflicts, and Russian drone strikes, added support.
Gold is currently facing resistance around $3,675, with strong support near $3,615.
The EUR/USD pair slipped to 1.1725 in Friday’s Asian session, pressured by a stronger U.S. Dollar, though losses may be limited with markets expecting a Fed rate cut next week. Focus now shifts to Germany’s August HICP and U.S. consumer sentiment data. On Thursday, the ECB kept rates at 2.0%, signaling confidence in growth and inflation. The move lowered expectations for further easing, with markets now pricing only a 40% chance of another cut by spring.
Resistance is at 1.1750, with key support at 1.1660.
