Gold Soars to $3386 as Fed Rate Cut Odds Surge: Key Levels to Watch

Gold Soars to $3386 as Fed Rate Cut Odds Surge: Key Levels to Watc

Gold prices gained sharply as the chance of a rate cut by the Fed increased.  It hit a high of $3386 yesterday and is currently trading around $3375.

Emphasizing cooling job growth, labor market dangers, and falling inflationary pressures, Federal Reserve Chair Jerome Powell's dovish address at Jackson Hole dramatically raised market expectations. for a rate reduction as early as September. Fed funds futures currently project a 70–91% chance for a 0.25% rate reduction; analysts expect up to two cuts by year-end. Though future remarks by Powell pointed to a turn toward monetary easing, US stocks surged, Treasury yields fell, and the dollar weakened. Cuts still rely on financial statistics.

According to the CME Fed Watch tool, the chances of  25 bpbs rate cut in Sep 17th  2025 meeting have increased to 84.30% from 83.70% a day ago.

Technical Analysis: Key Levels and Trading Strategy
 
Gold prices are holding below 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 $3350, and a break below this level will drag the yellow metal to $3320 $3300/$3290/$3275/$3245/$3200. The near-term resistance is at $3340 with potential price targets at $3355/$3374/$3385/$3400/$3420/$3450/$3475/$3500/$3550.

It  is good to buy on dips around $3350 with a stop-loss  at $3330 for a target price of $3400.