On Tuesday, gold prices have also been influenced by a relatively steady U.S. dollar. The dollar has recently pulled back from three-month highs, coupled with rising U.S. election concerns, which has supported gold demand. Fed rate cut expectations and political uncertainty around the election have further bolstered gold’s appeal as a safe-haven asset, giving bulls optimism for a potential rally.
Federal Reserve Policy and Upcoming Economic Data in Focus
The Federal Reserve’s upcoming rate decision, due on November 7, will be crucial in shaping gold’s path forward. Market expectations lean heavily toward a 25-basis-point cut, with CME’s FedWatch Tool indicating a 97% probability.
This week’s U.S. economic data—including job openings, ADP employment data, and the core personal consumption expenditures (PCE) price index—will offer insight into the Fed’s likely stance. Lower interest rates generally benefit gold by reducing the opportunity cost of holding a non-yielding asset, enhancing its appeal as a hedge against economic instability.
Gold Market Forecast
The near-term outlook for gold remains cautiously bullish, provided prices hold above the key support at $2,733.64 and approach the critical resistance at $2,758.53. Key factors, including the Fed’s decision and upcoming data, will influence the direction of interest rates and inflation expectations.