Gold Rush 2025: Will the Fed, Central Banks, and Charts Align for $3000?

Gold hits fresh all-time high of $2945 on board-based US dollar. It hit a low of $2877 and is currently trading around $2945.

FOMC Minutes in Focus: Hints on Future Rate Path

The Federal Reserve (FOMC) is releasing meeting minutes today in January when they voted to maintain interest rates at 4.25% to 4.50%. The minutes are likely to reflect what the members think about inflation, which is close to the 2% target but still high.

They probably talked about the economy and the labor market, which are good but still in doubt. Some think the Fed will cut rates only once (if at all) in 2025 because inflation is still a problem.

Investors are eager to read the notes to see what the Fed will do next. The Fed's next meeting is in March, where they'll say more about what they're looking for from the economy.

Central Banks Remain Gold's Steady Backstop

The World Gold Council predicts that central banks will continue purchasing gold in 2025. Central banks use gold as a secure method of protection from economic and global issues.

Central banks purchased more than 1,000 tons of gold consecutively for three years. Some major purchasers are Poland, India, and Turkey.

Rate Pause Sentiments Climb

According to the CME Fed Watch tool, the chances of a rate pause in the Mar 19th, 2025 meeting have increased to 97.50% up from 97% a week ago.

Technical Analysis: Key Levels and Trading Strategy

Gold prices are holding above the short-term moving average of 34 EMA and 55 EMA and long-term moving averages (200 EMA) in the 4-hour chart. Immediate support is at $2920 and a break below this level will drag the yellow metal to $2890/$2875/$2860/$2850/$2830/$2800/$2770/$2740. The near-term resistance is at $2950, with potential price targets at $2957/$3000.

It is good to buy on dips around $2890 with a stop-loss at $2870 for a target price of $3000.