Gold Steadies After Fed’s Williams Signals Possible December Rate Cut

Fundamental Overview

Gold prices held firm on Friday, recovering earlier losses after dovish comments from Fed President John Williams boosted expectations for a potential December rate cut. Stronger-than-expected September job gains initially pressured gold, as markets reduced rate-cut bets and the U.S. Dollar strengthened.

Sentiment shifted after Williams noted that he sees “room for a further adjustment in the near term,” citing rising downside risks to employment and easing inflation. He described policy as “modestly restrictive” and expressed interest in moving rates closer to neutral. As a result, market odds for a December cut rose above 50%, up from 37% earlier.

Gold’s earlier weakness reflected dollar strength and expectations of steady Fed policy—both typically bearish for non-yielding assets. Traders now await delayed U.S. data releases next week, though September and October readings may remain distorted by the prolonged government shutdown, leaving the Fed with limited visibility before its December decision.

Gold Technical Analysis – Daily Chart

Technical Overview

• Gold is trading within an up channel.
• Price remains above the 10 & 50 SMAs, signaling bullish momentum.
• RSI sits in the neutral zone, while Stochastic indicates a positive trend.
• Immediate Resistance: 4128.07
• Immediate Support: 4030.43

How to Trade Gold

Gold retreated from its all-time high but found strong support and rebounded, breaking above a key resistance level. The metal is now retesting this zone, and holding above it could provide fresh bullish momentum. If support remains intact, further upside continuation is likely.

Trade Suggestion:
Limit Buy: 4047.03
Take Profit: 4110.18
Stop Loss: 4012.31

Frequently Asked Questions (FAQ)

Q1: Why did gold recover after falling earlier?
Dovish remarks from Fed’s Williams revived expectations for a December rate cut.

Q2: What initially pressured gold?
Strong U.S. jobs data and a firmer Dollar weighed on sentiment.

Q3: What is the key event to watch next?
Next week’s delayed U.S. economic data releases.

Q4: What levels are important on the chart?
Support at 4030.43 and resistance at 4128.07.

Q5: What is the short-term trend?
Gold remains within an uptrend channel with bullish momentum.

Disclaimer

This report is intended for informational purposes only and does not constitute financial or investment advice. Market conditions can change quickly. Traders should conduct their own analysis or consult a licensed financial professional before making trading decisions.