Gold prices are staying close to record highs as traders look ahead to the US Personal Consumption Expenditures (PCE) report for hints on the Federal Reserve’s next steps. Recent strong US economic data and increasing global tensions continue to make gold a popular safe-haven choice for investors.
Gold prices (Symbol: XAUUSD) are hovering near record levels at USD 2,670 per ounce as traders anticipate the US Personal Consumption Expenditures (PCE) report, seeking clearer direction on the Federal Reserve’s monetary policy.
Gold has pulled back from a recent peak of USD 2,685.58 and is now consolidating around the USD 2,660 mark. On the 30-minute XAUUSD chart on vtmarkets.com, the price is holding just above the 24- and 72-period EMAs, suggesting short-term support.
The MACD indicates weakening bullish momentum, with the histogram approaching zero, signalling possible consolidation or a minor correction.
Key support is observed at USD 2,650, and a break below this level could result in further declines, with the next support target at USD 2,625. On the upside, resistance lies at USD 2,680, and a move above this level may signal renewed bullish strength.
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Market participants are cautious, as strong US economic data has reduced expectations of aggressive Fed rate cuts, dampening the bullish outlook for gold. Currently, markets are pricing in a 49% probability of a 50 basis point rate cut in November, reflecting uncertainty around the Fed’s next steps.
In addition, fiscal stimulus measures in China and rising geopolitical tensions in the Middle East continue to bolster gold’s appeal as a safe-haven asset.
The yellow metal is on track for its third consecutive weekly gain, indicating sustained investor interest.
Caution is key as traders anticipate the upcoming PCE data release, which could provide crucial insights into inflation trends. Strong inflation figures may reduce the likelihood of further Fed rate cuts, potentially cooling the bullish case for gold. In such a scenario, higher interest rates make holding non-yielding assets like gold less attractive, leading to possible short-term corrections in price.
At the same time, ongoing geopolitical tensions, particularly in the Middle East, and economic uncertainties—such as China’s fiscal policies—continue to support gold’s role as a safe-haven asset. This could lead to further upward pressure on prices as investors seek refuge from global risks.
Traders eyeing record-high levels should be prepared for volatility, especially if the Federal Reserve hints at a more cautious stance on future rate cuts. A softer Fed outlook could keep gold demand strong, pushing prices higher. However, if inflation data weakens the case for easing monetary policy, gold might face downward pressure. Traders should watch key levels closely, with USD 2,680 as immediate resistance and USD 2,650 providing crucial support.
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