Gold Price Today – Key Highlights
- Gold price (XAU/USD) trades near $3,750 in early Asian session.
- US Federal Reserve rate cut expectations continue to support the yellow metal.
- Geopolitical tensions in Europe and NATO’s warning to Russia boost safe-haven demand.
- Fed Chair Jerome Powell’s cautious comments cap sharp upside momentum.
- Analysts predict gold could remain bullish in the near term, with volatility driven by central bank policy and geopolitical risks.
Gold Price Gains Ground Near $3,750
The gold price forecast for Thursday shows the precious metal moving higher, with XAU/USD trading near $3,750 in the Asian session. Investors are increasingly betting on more US Federal Reserve rate cuts, which could lower the cost of holding non-yielding assets like gold. Additionally, rising geopolitical uncertainty in Europe has boosted demand for safe-haven assets, helping gold maintain its upward momentum.
Fed Rate Cuts Support Gold Outlook
The Federal Reserve cut interest rates by 25 basis points in September, bringing the Federal Funds Rate down to 4.00%–4.25%. According to the Summary of Economic Projections (SEP), Fed policymakers expect two more rate cuts before the end of 2025 and one more in 2026.
Lower interest rates typically reduce the opportunity cost of holding gold, making it more attractive for investors compared to yield-bearing assets like bonds and savings accounts. As a result, the XAU/USD forecast remains positive in the short to medium term.
Powell’s Cautious Stance Limits Upside
Despite the bullish trend, Fed Chair Jerome Powell has issued cautious remarks that are limiting gold’s upside momentum. Powell stated on Tuesday that the US central bank would carefully balance risks—between labour market weakness and persistent inflation pressures—before committing to aggressive rate cuts.
This cautious approach has created market uncertainty, preventing gold prices from breaking above major resistance levels. Traders remain watchful of Powell’s comments and upcoming US economic data for more clarity.
Geopolitical Tensions Boost Safe-Haven Demand
Apart from rate cuts, geopolitical tensions are playing a major role in gold’s rally. NATO recently warned Russia after it violated Estonian airspace, calling Moscow’s actions part of a “pattern of increasingly irresponsible behaviour.” NATO vowed to use “all necessary military and non-military tools” to defend itself.
Such warnings have heightened global uncertainty, increasing investor appetite for safe-haven assets like gold, the US dollar, and government bonds. Historically, gold performs strongly during times of political instability, war threats, and financial market stress, making it one of the preferred investments during crises.
Market Analysts’ Views on Gold Price Forecast
Financial experts believe the XAU/USD trend will remain bullish as long as the Federal Reserve maintains its dovish stance and global risks persist.
- Analysts note that support for gold remains around $3,700, while the next resistance level stands at $3,780–$3,800.
- If gold breaks above $3,800, it could test the $3,850–$3,900 range in the coming weeks.
- However, if Powell’s cautious stance gains traction and inflation pressures ease, gold may consolidate near $3,700 before making a decisive move.
Why Lower Interest Rates Support Gold Prices
One of the key factors influencing gold prices is the relationship between interest rates and non-yielding assets. When central banks like the Fed cut rates, it makes traditional interest-bearing investments less attractive, encouraging investors to shift towards gold.
- Lower yields = higher gold demand.
- Weaker US dollar = stronger gold.
- Safe-haven demand rises during uncertainty.
These fundamentals explain why gold tends to outperform during economic slowdowns, recessions, or geopolitical crises.
Technical Outlook: XAU/USD Levels to Watch
- Immediate Support: $3,700
- Major Support Zone: $3,650
- Immediate Resistance: $3,780
- Key Resistance Zone: $3,850–$3,900
If gold breaks above $3,780, analysts expect a strong rally toward $3,850–$3,900, while a fall below $3,700 could trigger profit booking and pull gold back toward $3,650.
Investment Sentiment and Safe-Haven Appeal
Global investors are turning to gold ETFs, bullion, and futures contracts as part of their diversification strategy. Rising risks in the equity markets, concerns over global growth, and volatility in crude oil prices have further added to gold’s safe-haven appeal.
In times of currency weakness, inflation fears, and political instability, gold often outperforms other asset classes. With central banks worldwide increasing their gold reserves, the outlook remains supportive for the precious metal.
Key Takeaways – Gold Price Forecast (XAU/USD)
- Gold trades near $3,750, supported by Fed rate cut bets and global risks.
- Powell’s cautious remarks about inflation and labour market slow rate cut expectations.
- Geopolitical tensions in Europe strengthen gold’s safe-haven demand.
- Technical outlook suggests gold could test $3,850 if resistance breaks.
- Investors should watch upcoming US economic data, inflation numbers, and Fed statements for direction.
Conclusion: Will Gold Stay Above $3,750?
The gold price forecast indicates that XAU/USD has strong upward momentum, with rate cut expectations and geopolitical tensions acting as key drivers. However, Jerome Powell’s cautious stance on monetary policy could cap the rally in the short term.
For now, as long as global risks remain elevated and the Fed signals more cuts, gold is expected to stay well-supported above $3,700 and may attempt to break toward the $3,800–$3,900 zone in the coming weeks.
Investors are advised to monitor US data releases, Fed commentary, and geopolitical developments closely to understand the next big move in gold price trends.
