Gold Shines Above $3350 as Fed Rate Cut Expectations Drive Down Treasury Yields; Eyes $3400 Target

Gold prices gained above $3350 on easing US treasury yields.   It hit a low of $3331 yesterday and is currently trading around $3360.

The CME FedWatch Tool indicates that investor expectations for a Federal Reserve interest rate decrease at the September 17, 2025, FOMC meeting have significantly grown, now implying a 94–98% likelihood of a 25-basis-point reduction. Recent weak labor market figures and a lower July inflation report have contributed to this rise in expectations, which has caused a fall in Treasury yields and future markets mostly pricing in a lowering of the federal funds rate to 4.00%–4.25%. Although certain Fed officials have indicated that several reductions should the economy continue to be weak, the choice is data-dependent; the September meeting will include an evaluation of additional inflation and employment data.

Technical Analysis: Key Levels and Trading Strategy
 
Gold prices are holding above the short-term moving average 34 EMA and  55 EMA and above the long-term moving averages (200 EMA) on the 4-hour chart. Immediate support is at $3340, and a break below this level will drag the yellow metal to $3320/$3300/$3290/$3275/$3245/$3200. The near-term resistance is at $3385 with potential price targets at $3400/$3420/$3450/$3475/$3500/$3550.

It is good to buy on dips around $3330 with a stop-loss at $3300 for a target price of $3400.