Gold Price Hits Record $3,682 as Fed Meeting Looms

The gold price (XAU/USD) soared to a new all-time high on Monday, climbing above $3,680 as traders positioned for this week’s Federal Reserve policy meeting. At the time of writing, gold trades at $3,681, up more than 1% on the day, with momentum pointing toward the key $3,700 level.

Fed Expectations Boost Gold

Markets are widely expecting the Fed to deliver a 25-basis-point rate cut at its September 16–17 meeting, while a smaller group of investors see a possible 50 bps cut. The rally in gold follows falling U.S. Treasury yields and a weaker U.S. Dollar Index (DXY), which dropped to near one-week lows.

Recent economic data has added to expectations of a policy shift. U.S. payroll revisions revealed that job gains between April 2024 and March 2025 were overstated by 911,000, sparking concerns over labor market weakness. Combined with Jerome Powell’s dovish tone at the Jackson Hole Symposium, traders see the Fed resuming an easing cycle.

Market Movers to Watch

• U.S. Retail Sales (Tuesday) could influence market tone ahead of the Fed’s announcement.
• University of Michigan sentiment data showed consumer confidence falling to 55.4, with inflation expectations for five years climbing to 3.9%.
• Deutsche Bank forecasts a 25 bps cut at each of the Fed’s three remaining meetings this year.
• Political pressure is also in focus, with President Donald Trump urging the Fed to cut deeper.

Technical Outlook: Eyes on $3,700

Gold’s uptrend remains intact, but the Relative Strength Index (RSI) signals overbought conditions, suggesting limited room for immediate upside.

• Support levels: $3,674, $3,650, and $3,613.
• Resistance levels: $3,682 and the psychological $3,700 mark.

While a short-term pullback is possible, the broader outlook remains bullish as investors await the Fed’s decision and updated dot plot.

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