Created
: 2025.10.02
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Gold Price Forecast: XAU/USD remains near all-time high around $3,900 as Fed dovish bets swell
World FX news
Breaking news
Gold Price Forecast: XAU/USD remains near all-time high around $3,900 as Fed dovish bets swell
New
2025.10.02 19:40
2025.10.02 19:40
2025.10.02 19:40
- Gold price trades firmly amid firm Fed dovish bets.
- The US government shutdown and weakening job market have prompted the Fed's interest rate expectations.
- Headcounts in the US private sector labor force were reduced by 32K in September.
Gold price (XAU/USD) trades 0.35% higher to near $3,880 during the European trading session on Thursday, close to its all-time high of $3,895 posted on Wednesday. The yellow metal demonstrates strength as the United States (US) government shutdown has intensified speculation for more interest rate cuts by the Federal Reserve (Fed) this year.
According to the CME FedWatch tool, traders seem sure that the Fed will cut interest rates by 25 basis points (bps) to 3.75%-4.00% in the policy meeting later this month and see an 87% chance of lowering them again in the December meeting.
Theoretically, lower interest rates by the Fed bode well for non-yielding assets, such as Gold.
On Tuesday midnight, the White House announced the partial government closure as the stopgap bill failed to get approved in the House of Senate. According to a White House memo, the US Growth Domestic Product (GDP) could decline by $15 billion each week on Washington's closure.
US President Donald Trump has held Democrats responsible for the shutdown and has attacked their priorities by freezing $26 billion in funding towards Democratic-leaning states, Reuters reported.
Another reason behind swelling Fed dovish bets is the weakening United States (US) job market conditions. The US ADP Employment Change report for September showed on Wednesday that the private labour force was reduced by 32K headcounts, which was expected to have seen a fresh addition of 50K workers.
Gold technical analysis
Gold price aims to reclaim the all-time high of $3,895 posted on Wednesday. The near-term trend of the Gold price remains bullish as the 20-day Exponential Moving Average (EMA) slopes higher around $3,717.20. The upward-sloping trendline from the August 22 low around $3,321.50 will act as key support for the Gold price.
The 14-day Relative Strength Index (RSI) oscillates inside the 60.00-80.00 range, suggesting a strong bullish momentum.
On the upside, the Gold price could extend its upside towards $4,000. Looking down, the 20-day EMA will act as key support.
Gold daily chart
-1759401567333-1759401567338.png)
Gold FAQs
Gold has played a key role in human's history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn't rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country's solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Last updated
: 2025.10.02
Related articles
Gold extends losses as US-China trade optimism fuels risk-on sentiment
2025.10.28 21:17Gold Price Forecasts: XAU/USD hits lows sub-$3,900 weighed by risk-on markets
2025.10.28 20:47Copper approaches record high - Commerzbank
2025.10.28 20:04China's net Gold imports from Hong Kong significantly weaker vs previous year - Commerzbank
2025.10.28 20:01Gold and Silver continue to correct - Commerzbank
2025.10.28 19:58Gold: Gold price rises to a new record high - Commerzbank
2025.10.28 19:48
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
USD/CHF declines for fourth day as Swiss Franc gains, Fed rate cut expected
USD/CHF trades lower on Tuesday, around 0.7930 at the time of writing, down 0.27% for the day. The pair extends its four-day losing streak as the Swiss Franc (CHF) strengthens amid fading expectations of further monetary easing by the Swiss National Bank (SNB).
New
2025.10.29 00:13GBP/USD sinks below 1.33 as UK fiscal woes deepen ahead of budget
The GBP/USD dives more than 0.50% on Tuesday as market participants digested news of the UK's Office for Budget Responsibility (OBR), which plan to cut productivity, leading to a huge hole in the public finances. The pair tumbled below 1.3300 for the first time since mid-October.
New
2025.10.29 00:07GBP underperforms versus USD - Scotiabank
Pound Sterling (GBP) is a moderate underperformer on the session so far, falling 0.1% against the US Dollar (USD) at writing after giving up early gains through the upper 1.33s in Asian trade.
New
2025.10.28 23:24EUR grinds cautiously higher for fifth day - Scotiabank
The Euro (EUR) is grinding slowly but surely higher, with the support of short-term spreads which are maintaining the recent compression in EZ/US short-term yields, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
2025.10.28 23:23CAD is little changed on the day - Scotiabank
Spot is little changed.
New
2025.10.28 23:21USD mixed to marginally lower - Scotiabank
The US Dollar (USD) is mixed but tracking a little lower overall as the Dollar Index (DXY) continues to drift back from the 99 zone where the index appears to have peaked after its latest run higher, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
2025.10.28 23:19GBP/JPY slips to one-week low as Yen firms on intervention risk and trade optimism
The British Pound (GBP) fell sharply against the Japanese Yen (JPY) on Tuesday as the Yen strengthened across major peers, recovering from recent weakness tied to Japan's political and fiscal developments.
New
2025.10.28 23:09EUR/JPY weakens as Yen rises on US-Japan deal, ECB and BoJ meetings eyed
EUR/JPY weakens on Tuesday, falling 0.50% for the day to around 177.10 at the time of writing, after hitting a multi-year high at 178.23 the previous day, and halting a five-day winning streak.
New
2025.10.28 22:59EUR/GBP hits multi-year highs past 0.8760 amid generalised Pound weakness
The Euro accelerated its rally against a weaker British Pound on Tuesday to reach its highest level in two years, and is about to break the November 2023 high at 0.8765 at the time of writing.
New
2025.10.28 21:45Gold extends losses as US-China trade optimism fuels risk-on sentiment
Gold (XAU/USD) extends losses on Tuesday as investors rotate out of safe-haven assets amid renewed risk-on sentiment. At the time of writing, XAU/USD is trading around $3,925, down nearly 1.3% on the day, after briefly slipping below the $3,900 level, marking its lowest level in three weeks.
New
2025.10.28 21:17Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
