{"id":120634,"date":"2025-09-23T16:25:36","date_gmt":"2025-09-23T13:25:36","guid":{"rendered":"https:\/\/ironfx-com.wp-dev.int.theitops.net\/?p=120634"},"modified":"2026-01-16T14:39:20","modified_gmt":"2026-01-16T12:39:20","slug":"golds-weekly-update-bulls-lead-golds-price-higher","status":"publish","type":"post","link":"https:\/\/www.smartindonesiafx.id\/ar\/golds-weekly-update-bulls-lead-golds-price-higher\/","title":{"rendered":"Gold\u2019s Weekly Update: Bulls lead gold\u2019s price higher"},"content":{"rendered":"

Bulls with wide strides, are leading gold\u2019s price in new record high levels. In today\u2019s report on a fundamentals level, we are to have a look at whether the negative correlation of the USD with gold\u2019s price is still active or not, also how the Fed\u2019s interest rate decision affected gold\u2019s price and finally what\u2019s up for the week for gold traders. For a rounder view we are to conclude the report with a technical analysis of gold\u2019s daily chart.<\/p>\n\n\n\n

USD-Gold negative correlation seems inactive  <\/strong><\/h2>\n\n\n\n

We make a start by examining whether the negative correlation of gold\u2019s price with the USD is currently is currently active or not. We have to note that on Monday the USD weakened against its counterparts and at the same day gold\u2019s price was on the rise reaching new record high. <\/p>\n\n\n\n

Yet should one examine the overall movement of the two trading instruments over the past week<\/a>, he\/she could reach the conclusion that both trading instruments were on the rise signalling that their negative correlation is currently inactive. Also we note that US bond yields were on the rise since our last report yet at the same time failed to attract safe haven inflows from the precious metal as gold\u2019s price also kept rising. <\/p>\n\n\n\n

The fact that both US yields and gold\u2019s price were on the rise, tends to imply that investors may not be trusting the outlook of the US economy in order for them to divert funds from gold to US bonds, or even are not attracted to US bonds as the Fed is about to continue cutting rates further. \u00a0\u00a0<\/p>\n\n\n\n

Dovish expectations for the Fed drive gold\u2019s price higher<\/strong><\/h2>\n\n\n\n

May be the key fundamental issue driving gold\u2019s price higher was the Fed\u2019s interest rate decision. The bank cut rates by 25 basis points as was expected last Wednesday. In its accompanying statement, the bank highlighted the elevated uncertainty for the economic outlook. It\u2019s interesting that every Fed policymaker was in favour of the 25 basis points rate cut except of the newly appointed by US President Trump, Stephen Miran who favored a double rate cut. <\/p>\n\n\n\n

In its projections<\/a>, the bank signaled that two more rate cuts are to come until the end of the year and another one is to follow in 2026 and seems relatively confident for the US economic outlook. A this point we would note that the market\u2019s expectations are leaning on the dovish side. <\/p>\n\n\n\n

Also Fed Chairman Powell, stated that the near-term risk to inflation are on the upside. Overall, the Fed\u2019s direction is now towards more monetary policy easing, yet the bank seems to be in no rush to cut rates further. <\/p>\n\n\n\n

The pace of further easing is expected to be heavily data dependent especially on the fields of inflation and employment, as the Fed\u2019s dual mandate is to keep inflation low and steady and maximize employment. Gold traders are expected to keep a close eye on Fed Chairman Powell\u2019s speech later today and should he signal more hesitation towards further easing of the bank\u2019s monetary policy we may see gold\u2019s price slipping and vice versa.\u00a0 \u00a0\u00a0<\/p>\n\n\n\n

Upcoming financial releases<\/strong><\/h2>\n\n\n\n

To conclude with fundamentals for gold\u2019s price we would like to highlight two financial releases in the coming days that could affect gold\u2019s direction. The first would be the release of the final US GDP Rates for Q2. Should the rates show a healthy growth rate for the US economy possibly surpassing the revised GDP rate for Q2 of 3.3%yy, we may see the release weighing on gold\u2019s price. <\/p>\n\n\n\n

On the flip side should the rates slow down, implying that the US economy grew at a slower pace than initially expected, we may see market uncertainty for the US economy\u2019s outlook intensifying driving gold\u2019s price even higher. Also we highlight the release of the PCE rates for August. <\/p>\n\n\n\n

The headline rate is expected to tick up while forecasts are for the core rate to remain unchanged at 2.9%yy. Should the rates show that inflationary pressures in the US economy remain relatively resilient or even intensify, thus enhancing the Fed\u2019s doubts to cut rates further, we may see gold\u2019s price slipping. <\/p>\n\n\n\n

In the contrary should the rates slow down notably, implying and easing of inflationary pressures in the US economy thus adding more pressures on the Fed to ease its monetary policy further, we may see gold\u2019s price getting further support. <\/p>\n\n\n\n

Gold Technical Analysis<\/strong><\/h2>\n\n\n\n

XAU\/USD Daily Chart<\/strong><\/strong><\/strong><\/h3>\n\n\n\n
\"Gold<\/figure>\n\n\n\n