Gold Holds at $2,638 as Investors Eye Fed Policy, Key U.S. Data
Gold prices steadied at $2,638 per ounce on Tuesday, as markets treaded cautiously ahead of crucial U.S. economic reports that could shape the Federal Reserve’s next steps.
The Job Openings and Labor Turnover Survey (JOLTS), ADP employment data, and Friday’s nonfarm payrolls are expected to clarify the central bank’s direction on interest rates. Traders are pricing in a 75% chance the Fed will cut rates by 25 basis points at its December meeting, buoyed by recent remarks from officials including Governor Christopher Waller. Waller signaled progress toward the Fed’s 2% inflation goal, amplifying expectations of a more accommodative stance.
Still, uncertainty lingers over the Fed’s 2025 plans, leaving investors wary. Gold’s appeal as a hedge against economic unpredictability and geopolitical strife remains strong, particularly with global tensions simmering. Recent clashes in the Middle East, including Israeli strikes on Hezbollah positions in Lebanon, have further underscored gold’s role as a safe haven.
Technical Outlook: Key Levels to Watch
Gold is consolidating just below its 50-day exponential moving average (EMA) of $2,643, a critical marker of short-term momentum.
•Resistance: The first test lies at $2,665, followed by $2,684. A breach of $2,710 could signal stronger bullish momentum.
•Support: Immediate support sits at $2,622. Should prices fall below this level, declines to $2,605 or even $2,585 may follow.
The Relative Strength Index (RSI) at 49 points to neutral sentiment, with a slight bearish undertone. A move above $2,665 could confirm upward momentum, while a drop below $2,622 would heighten selling pressure.
Broader Market Drivers
Gold typically thrives in low-rate environments, and the Fed’s potential pivot to a neutral stance in 2025 could bolster demand. Meanwhile, geopolitical tensions continue to provide a floor for prices. With the global economy facing persistent risks, the precious metal remains a favored refuge for investors navigating uncertainty
Related Articles
DR Congo reviews cobalt export curbs as stockpiles tighten the battery supply chain
The Democratic Republic of Congo is reassessing temporary restrictions on cobalt exports after a period of oversupply, weak prices and growing inventories at mine sites and trading hubs. The review comes as producers, battery manufacturers and traders monitor whether reduced shipments can support prices without disrupting long-term supply contracts.
South Africa’s rail and port overhaul reshapes export plans for coal, iron ore and manganese
South Africa is accelerating structural changes in freight logistics as mining companies push for better access to rail and port capacity. The reform effort is central to export volumes for bulk commodities that have been constrained by infrastructure failures, security issues and lower equipment availability.