Gold prices retreated slightly from their all-time highs, weighed down by the Fed's cautious stance and a stronger dollar.
2025-09-25 00:24:02
Spot gold faced mild selling pressure on Wednesday (September 24), entering a consolidation phase after hitting a record high of $3,791 the previous day. Spot gold was trading around $3,738, down from its intraday high of $3,779, as traders assessed the Federal Reserve's cautious stance on its path of monetary policy easing.
Despite the Federal Reserve's 25 basis point rate cut last week, market expectations for further rate cuts before the end of the year remain firm, but a rebound in the US dollar and rising US Treasury yields are limiting gold's upward attempts. However, ongoing geopolitical tensions and the overall fundamental and technical outlook continue to mitigate downside risks to gold prices - even as gold prices stall near their all-time highs, bargain hunters remain active.
In a speech in Washington on Tuesday, Federal Reserve Chairman Powell reiterated his consistent stance, emphasizing that monetary policy remains "data-dependent" and that there is "no preset path" for future interest rate decisions. He acknowledged that the balance of risks has shifted, with downside risks to employment increasing, but warned that excessive easing could lead to "abandoning the inflation problem without addressing it."
Looking ahead, the Federal Reserve faces a delicate balancing act with its dual mandate of price stability and maximum employment, but policy is gradually shifting toward safeguarding labor market stability. While progress toward the 2% inflation target appears to have stalled, upward price risks have yet to materialize. Monetary policy remains remarkably restrictive, and maintaining high interest rates for an extended period could unnecessarily harm employment—implying that even with cautious action, the Fed's policy bias should remain accommodative.
Technical analysis: Spot gold consolidates below all-time highs
(Source of spot gold daily chart: Yihuitong)
After hitting a new all-time high of $3,791, spot gold entered a period of consolidation, with bulls successfully holding the $3,750 mark so far. While the overall bullish outlook remains unchanged, momentum indicators have shown initial signs of weakness, suggesting that the market is digesting recent gains after an excessive rally.
On the downside: $3,750 is the immediate key support level, followed by the psychological barrier of $3,700. A break below $3,700 could shift the market landscape and trigger a deeper correction. However, gold prices remain firmly above their short-term and medium-term moving averages, highlighting the strength of the current uptrend.
On the upside, the historical high of $3,791 and the psychological barrier of $3,800 are key resistance levels. A sustained breakout above this range would further confirm the upward trend. Failure to generate significant upward momentum could lead to a period of consolidation before the next directional move.
At 00:32 Beijing time, spot gold was quoted at $3,742.19 per ounce, down 0.58%.
Despite the Federal Reserve's 25 basis point rate cut last week, market expectations for further rate cuts before the end of the year remain firm, but a rebound in the US dollar and rising US Treasury yields are limiting gold's upward attempts. However, ongoing geopolitical tensions and the overall fundamental and technical outlook continue to mitigate downside risks to gold prices - even as gold prices stall near their all-time highs, bargain hunters remain active.
In a speech in Washington on Tuesday, Federal Reserve Chairman Powell reiterated his consistent stance, emphasizing that monetary policy remains "data-dependent" and that there is "no preset path" for future interest rate decisions. He acknowledged that the balance of risks has shifted, with downside risks to employment increasing, but warned that excessive easing could lead to "abandoning the inflation problem without addressing it."
Looking ahead, the Federal Reserve faces a delicate balancing act with its dual mandate of price stability and maximum employment, but policy is gradually shifting toward safeguarding labor market stability. While progress toward the 2% inflation target appears to have stalled, upward price risks have yet to materialize. Monetary policy remains remarkably restrictive, and maintaining high interest rates for an extended period could unnecessarily harm employment—implying that even with cautious action, the Fed's policy bias should remain accommodative.
Technical analysis: Spot gold consolidates below all-time highs
(Source of spot gold daily chart: Yihuitong)
After hitting a new all-time high of $3,791, spot gold entered a period of consolidation, with bulls successfully holding the $3,750 mark so far. While the overall bullish outlook remains unchanged, momentum indicators have shown initial signs of weakness, suggesting that the market is digesting recent gains after an excessive rally.
On the downside: $3,750 is the immediate key support level, followed by the psychological barrier of $3,700. A break below $3,700 could shift the market landscape and trigger a deeper correction. However, gold prices remain firmly above their short-term and medium-term moving averages, highlighting the strength of the current uptrend.
On the upside, the historical high of $3,791 and the psychological barrier of $3,800 are key resistance levels. A sustained breakout above this range would further confirm the upward trend. Failure to generate significant upward momentum could lead to a period of consolidation before the next directional move.
At 00:32 Beijing time, spot gold was quoted at $3,742.19 per ounce, down 0.58%.
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