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Gold Price Forecast: XAU/USD Slips Below $4,400 as Fed Hawkish Repricing Boosts Dollar
Gold price (XAU/USD) has extended its reversal below the $4,400 mark, pressured by a hawkish repricing of Federal Reserve interest rate expectations that has strengthened the US Dollar and pushed Treasury yields higher. As of the latest trading session, spot gold is trading around $4,380, down from recent highs, as markets adjust to the possibility of prolonged higher borrowing costs.
The primary driver behind gold’s decline is the market’s reassessment of the Federal Reserve’s monetary policy path. Recent comments from Fed officials, coupled with resilient economic data, have led traders to trim bets on early rate cuts, boosting the US Dollar and diminishing the appeal of non-yielding assets like gold. The 10-year Treasury yield has climbed to multi-week highs, increasing the opportunity cost of holding bullion.
The Federal Reserve’s stance remains data-dependent, but the market now prices in a higher peak rate and a slower pace of cuts than previously anticipated. This shift has been reflected in the dollar index, which has rallied to a two-month high, directly pressuring gold. According to the CME FedWatch Tool, the probability of a rate cut in March has fallen below 30%, down from over 50% a month ago.
For investors, the current environment suggests that gold may face headwinds in the near term. However, analysts note that physical demand from central banks and safe-haven buying amid geopolitical uncertainties could provide a floor. The key support level to watch is $4,350, while resistance sits at $4,420.
From a technical perspective, gold has broken below its 50-day moving average, signaling further downside potential. The Relative Strength Index (RSI) is hovering near 45, indicating bearish momentum but not yet oversold. If the $4,350 support holds, a rebound toward $4,400 is possible; otherwise, the next target could be $4,280.
Gold’s reversal below $4,400 reflects a broader market shift toward a more hawkish Fed outlook, strengthening the dollar and yields. While the near-term bias remains bearish, underlying demand and geopolitical risks could limit losses. Traders should monitor upcoming US economic data and Fed speeches for further direction.
Q1: What is the current gold price forecast?
As of the latest data, gold is trading around $4,380, with a bearish bias as long as it stays below $4,400. Key support is at $4,350, and resistance is at $4,420.
Q2: How does Federal Reserve policy affect gold prices?
Gold is sensitive to interest rate expectations. When the Fed signals higher rates for longer, the dollar strengthens and yields rise, making gold less attractive and typically pushing prices lower.
Q3: What are the key levels to watch in XAU/USD?
Immediate support is at $4,350, followed by $4,280. On the upside, resistance is at $4,400 and then $4,420. A break above $4,420 could signal a reversal of the current downtrend.
This post Gold Price Forecast: XAU/USD Slips Below $4,400 as Fed Hawkish Repricing Boosts Dollar first appeared on BitcoinWorld.
The GBPAUD pair confirmed its ability to withstand negative pressure by posting another positive close above the support level at 1.8815. The pair is currently forming a temporary sideways fluctuation, stabilizing near 1.8890.
stochastic’ attempt to exit oversold territory will give the price a real opportunity to regain positive momentum, making it easier to form bullish waves and begin recording further gains, with the pair expected to advance soon toward 1.8950 and 1.9030.
The expected trading range for today is between 1.8860 and 1.8950
Trend forecast: Bullish
Despite facing negative pressures and suffering some losses by Platinum price reaching $1777.00, it didn’t affect the main bullish trend, depending on its stability above the main support level near $1695.00.
The price needs to gain a new bullish momentum to help it renew the bullish attempts, to expect an attempt to rally towards $1830.00, then attempting to surpass the additional barrier at $1870.00, to confirm its readiness to form extra bullish waves in the upcoming period.
The expected trading range for today is between $1750.00 and $1830.00
Trend forecast: fluctuating within the bullish path
Track the latest platinum price trends in Malappuram. Today, platinum is priced at
₹55,130 for 10 grams, ₹5,51,300 for 100 grams, and ₹55,13,000
per kilogram. In August, platinum prices fluctuated. The highest for 100 grams was
₹5,78,100, and the lowest ₹5,02,400. For 1
kg, prices ranged from ₹50,24,000 to ₹57,81,000.
Several factors affect platinum prices, such as global demand and supply dynamics,
mining activity, and geopolitical risks. Industrial consumption—mainly in the automotive
and electronics sectors—also drives price trends. Currency movements, especially of
the US dollar, along with inflation, investor behavior, and central bank actions, further
influence market value.
Silver (XAG/USD) is little changed on Monday, caught between a weaker US Dollar (USD) and lingering hawkish Federal Reserve (Fed) expectations, leaving the metal without clear direction after tumbling 4.11% on Friday in the wake of Fed Chair Kevin Warsh’s hawkish Jackson Hole comments. At the time of writing, XAG/USD trades around $66.25, down 0.23% on the day.
Warsh’s inflation-focused remarks at Jackson Hole initially pushed the US Dollar to over one-week highs, with the Dollar Index (DXY) climbing as high as 99.72, as traders revived bets on a September rate hike. The CME FedWatch Tool now shows a 65% probability of a 25-basis-point increase at next month’s meeting. The Greenback has since retraced most of those gains on Monday, with the DXY trading around 99.44 at the time of writing.
From a technical perspective, the latest leg lower has pushed XAG/USD back below the 100-day Simple Moving Average (SMA), tilting the near-term bias to bearish, though the metal still holds above the 50-day SMA at $61 and a Fibonacci support band between $60.97 (61.8% retracement) and $64.79 (38.2% level).
The Relative Strength Index (RSI) on the daily chart at 53 remains in neutral territory, having eased from above 60, suggesting bullish momentum is starting to fade while the Moving Average Convergence Divergence (MACD) indicator hovers near the zero line with a flattened profile, hinting at a consolidative phase before the next directional move.
On the topside, initial resistance emerges at the 23.6% Fibonacci retracement at $67.16, followed closely by the 100-day SMA near $68, where a sustained break would open the way toward the Fibonacci structural anchor at $70.99 and ultimately the 200-day SMA at $72.
On the downside, immediate support is seen at the 38.2% retracement at $64.79, with deeper demand located at the 50% level at $62.88 and the 61.8% retracement at $60.97, while the 50-day SMA at $61 reinforces this broader demand zone on any extended pullback.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.29% | -0.10% | -0.24% | -0.35% | -0.01% | -0.09% | -0.18% | |
| EUR | 0.29% | 0.18% | 0.06% | -0.03% | 0.23% | 0.22% | 0.11% | |
| GBP | 0.10% | -0.18% | -0.11% | -0.24% | 0.05% | 0.03% | -0.04% | |
| JPY | 0.24% | -0.06% | 0.11% | -0.12% | 0.22% | 0.17% | 0.08% | |
| CAD | 0.35% | 0.03% | 0.24% | 0.12% | 0.35% | 0.29% | 0.19% | |
| AUD | 0.01% | -0.23% | -0.05% | -0.22% | -0.35% | -0.04% | -0.09% | |
| NZD | 0.09% | -0.22% | -0.03% | -0.17% | -0.29% | 0.04% | -0.08% | |
| CHF | 0.18% | -0.11% | 0.04% | -0.08% | -0.19% | 0.09% | 0.08% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Gold (XAU/USD) shows marginal gains on Monday, with price action hovering around $4.450 at the time of writing yet unable to take off from last week’s lows in the $4,400 area after depreciating more than 4% late last week. Rising bets that the Federal Reserve (Fed) will hike interest rates in September, coupled with the resumption of hostilities in Iran, are buoying the US Dollar and weighing on precious metals.
Bullion tanked on Friday as Fed Chairman Kevin Warsh conveyed an unexpectedly hawkish message at the Jackson Hole summit. Warsh urged policymakers to focus on prices, and said that the central bank has “work to do” to bring inflation to the bank’s 2% target. Investors ramped up bets of a September hike to 61% from 36% the day before, according to the CME’s FedWatch Tool.
Apart from that, the US and Iran exchanged attacks on Sunday to put an end to about one month of a tense truce. The US military attacked the Iranian island of Larak on Sunday, where the Islamic Revolutionary Guard Corps (IRGC) were allegedly preparing missiles to place sea mines in the Strait of Hormuz. Tehran responded by targeting US airbases in Jordan and the United Arab Emirates. The risk-off reaction has underpinned support to the safe-haven US Dollar.
XAU/USD trades at $4,450 after an impulsive reversal on Friday that pushed price action below the 200-day simple moving average (SMA) at $4,528. This is a very popular indicator for traders, and Friday’s clear move below it gives fresh hope for bears.
Momentum indicators in the bearish charts show a neutral-to-negative stance, with the Relative Strength Index (RSI) at 54.36 easing into a more neutral zone and the Moving Average Convergence Divergence (MACD) indicator drifting into negative territory, which hints at waning upside momentum and scope for further consolidation or downside probes.
Immediate support is seen at Friday’s floor in the $4,400 area, followed by the August 14 low near $4,310 and the August 6 low, near $4,225. Bulls, on the other hand, are likely to be challenged at the mentioned 200-day SMA, at $4,528, and the August 27 low near $4,565 ahead of last week’s highs, near $4,700.;
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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.
The GBPJPY pair lost its positive momentum as stochastic falls below the 50 level, forcing the pair to post further negative closes below the barrier at 217.85. As a result, the pair is currently forming some corrective waves while stabilizing near the additional support level at 216.35.
Continued exposure to negative pressure will increase the chances of breaking the current support, confirming the pair’s submission to the bearish corrective bias. We therefore expect it to target 215.55 soon, followed by the additional support level near 214.90.
The expected trading range for today is between 215.55 and 217.10.
Trend forecast: Bearish
Welcome, my fellow traders! I have prepared a price forecast for the USCrude, XAUUSD, and EURUSD using a combination of the margin zones method and technical analysis. Based on the market analysis, I suggest entry signals for intraday traders.
Last week, gold’s short-term trend turned bearish.
The article covers the following subjects:
Last week, oil tested the key support of 81.30–80.70 within the short-term uptrend. Bulls managed to hold this zone, and the price began to rise, reaching the first buy target of 84.02 today. The next target is the August high of 87.36. Therefore, consider keeping the remaining long positions open with a stop-loss order at breakeven.
Hold part of long trades opened at support B of 81.30–80.70. TakeProfit: 87.36. StopLoss: at breakeven.
Last week, gold shifted from a short-term uptrend to a downtrend. Today, the price continued to decline, but it has not yet reached the Target Zone of 4,388–4,358. Currently, the price is correcting higher. If the correction persists, the asset may climb to resistance A of 4,509–4,499. Consider short trades near this zone, targeting 4,453 and 4,396.
Sell near resistance A of 4,509–4,499. TakeProfit: 4,453, 4,396. StopLoss: 4,534.
Last week, the euro reached the key support of 1.1585–1.1572 within the short-term uptrend. Long trades can be considered near this zone, with the first target at 1.1642 and the second one around 1.1711.
If the EURUSD pair breaks below the support zone B of 1.1585–1.1572, the trend will turn bearish. In this case, one may consider short trades on the next trading day, targeting the lower Target Zone of 1.1459–1.1434.
Buy near support B of 1.1585–1.1572. TakeProfit: 1.1642, 1.1711. StopLoss: 1.1540.
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Despite Copper price neediness to the positive momentum in the last period, it didn’t affect its main bullish trend due to its stability above $6.3300 support, besides its attempt to settle above the bullish channel’s support at $6.4400.
The price needs a new bullish momentum to ease the mission of surpassing the barrier at $6.7400, to begin targeting new stations by its rally towards $6.8500 reaching $7.0200, while reaching below $6.3300 and providing a negative close will confirm its move to the negative track again, forcing it to suffer several losses by reaching $6.2000.
The expected trading range for today is between $6.4400 and $6.7400
Trend forecast: Bullish
Copper price kept its stability above the minor bullish channel’s support at$6.4500, announcing the continuation of the previously suggested bullish scenario, the current sideways fluctuations are caused by the continuation of the main indicators’ contradiction, specifically by stochastic reach below 50 level.
Therefore, we expect to provide mixed sideways trading until gathering extra bullish momentum, to activate the bullish attempts by targeting $6.7400 initially, and surpassing it will extend the trading towards the extra targets near $6.8500 and $7.0200.
The expected trading range for today is between $6.5000 and $6.7400
Trend forecast: Bullish