Recent hawkish comments from Fed officials, such as Philadelphia Fed President Patrick Harker’s preference for a “slow, methodical approach,” have dampened expectations for aggressive monetary easing.
The dollar, while lower, remains near a three-month high. Strong US economic data and concerns about the pace of rate cuts continue to support the currency.
Rodrigo Catril, senior FX strategist at National Australia Bank, highlighted the market’s nervousness about Fed policy and the continued strength of the US economy. This in turn has put additional pressure on currencies like the yen, which weakened to 153.19 per dollar on Wednesday, the lowest level since late July.
Market forecast: bullish outlook supported by risks
While technical signals point to possible corrections, the broader geopolitical and economic landscape supports a bullish outlook for the gold price in the near term. Ongoing global uncertainties, central bank demand and expectations of further monetary easing continue to increase gold’s appeal.
Any downside move could be short-lived, with strong support likely around $2680. A break above $2758.53 would confirm bullish continuation, while the market remains sensitive to shifting US election risks and Fed policy signals. Traders should remain alert to key technical levels and global developments in the coming days.