Gold Daily | Gold Hovers at $2,688 Amid Fed Rate Cut Expectations and Market Volatility

【Latest Gold Price and Recent Trends】

Gold prices are hovering around $2,688 per ounce after a mild rebound, following a 1.39% drop on Thursday due to profit-taking ahead of the upcoming FOMC meeting. The trend is influenced by U.S. economic data and Federal Reserve policies, with potential support from anticipated rate cuts.

【Technical Analysis】

Gold is experiencing resistance at the $2,723 level, with current consolidation near $2,680. The 4-hour chart indicates support at $2,660, with potential bullish sentiment if prices break through the resistance zone. Traders are advised to watch for further movements, which could test new highs if buyers push past key resistance levels.

【Market Sentiment and Economic Background】

Market expectations for a 25 basis point rate cut by the Fed remain high, with the likelihood calculated at 96.4%. This is set against a backdrop of mixed economic signals, including rising PPI and softening labor market indicators. The global economic landscape is also shaped by geopolitical tensions and central banks' monetary easing, affecting gold's appeal as a safe haven.

【Analyst Opinions】

Analysts suggest caution before the Fed meeting, as recent data has introduced volatility. Despite the expected rate cut, rising bond yields and dollar strength could limit gold's upside. Analysts predict gold may reach $2,900 by end-2025, driven by inflation, geopolitical risks, and economic policies under potential Trump leadership.