Gold values reach new highs as expectations for additional Fed rate cuts rise. It is trading at about $3727 and reached an intraday high of $3728.32.
Following the Federal Reserve's 25 basis point rate cut on September 17, 2025, bringing the federal funds rate to 4.00%-4.25%, market expectations for further easing have surged, with the CME FedWatch Tool indicating an 86% chance of another cut in October, up from 71.6% pre-meeting. Driven by a weakening job market, with payroll growth below 100,000 for four months and unemployment at 4.3%, the Fed's dovish stance is supported by its updated dot plot projecting a year-end 2025 rate of 3.5%-3.75%, implying about 70 basis points of cuts this year and one more in 2026. Despite inflation at 2.9%, above the 2% target, the Fed prioritizes employment support, with markets closely watching Fed Chair Powell and FOMC members for further guidance on the easing cycle.
Technical Analysis: Key Levels and Trading Strategy
Gold prices are holding above the short-term moving average 34 EMA and 55 EMA) and the long-term moving averages (200 EMA) on the 4-hour chart. Immediate support is at $3700, and a break below this level will drag the yellow metal to $3675/$3627/$3600. The near-term resistance is at $3730 with potential price targets at $3750/$3800.
It is good to buy on dips around $3578-80 with a stop-loss at $3524 35for a target price of $3800.


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