Gold prices edged higher in early Friday trading, hovering above $3,640, which has consolidated as a support level. After hitting a new record above $3,700 earlier in the week, the precious metal came under pressure from a US dollar rebound following the Federal Reserve’s rate cut and dovish guidance update. While such moves would normally weigh on the greenback, markets reacted to Jerome Powell’s remarks, in which the Fed Chair struck a dollar-supportive note by cautiously reminding investors that inflation remains elevated and that monetary policy decisions will remain data-dependent. With gold prices facing headwinds from the dollar recovery, some short-term resistance is expected. However, the broader outlook remains positive, supported by safe-haven demand driven by geopolitical and economic uncertainty, as well as the high likelihood of further Fed rate cuts in the final quarter of 2025.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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