|premium|

Gold Price Forecast: XAU/USD could see a profit-taking pullback ahead of US PMIs, Powell

  • Gold retreats after hitting lifetime highs above $3,750 early Tuesday.
  • US Dollar consolidates the downside ahead of Fed Chair Powell’s appearance.
  • Gold’s record rally remains unabated but overbought RSI conditions on the daily chart could caution buyers.

Gold is taking a breather early Tuesday after having extended the previous upsurge to renew record highs above the $3,750 psychological level.

Gold: All eyes on Powell and geopolitics

Gold traders look to take profits off the table after a two-day relentless record rally, repositioning ahead of the top-tier S&P Global preliminary US Manufacturing and Services PMI data and the eagerly awaited speech from US Federal Reserve (Fed) Chairman Jerome Powell.

Powell is due to speak about the economic outlook at the Greater Providence Chamber of Commerce Economic Outlook Luncheon, in Rhode Island, on Tuesday.

The US business growth data and Powell’s words will be closely scrutinized for fresh hints on whether the Fed will deliver two more interest rate cuts in the remainder of this year.

This comes after the hawkish remarks from Fed officials delivered on Monday and last week’s cautious rate cut decision announced by the US central bank.

New Fed Governor Stephen Miran said on Monday that the Fed is misreading how tight it has set monetary policy and will put the job market at risk without aggressive rate cuts.

Meanwhile, Fed policymakers Raphael Bostic, Beth Hammack and Thomas Barkin maintained their cautious rhetoric on further easing amid looming upside risks to inflation.

Besides, growing expectations of further Fed rate cuts, intensifying geopolitical tensions surrounding the Russia-Ukraine conflict and rising concerns over the US fiscal debt emerge as the key factors powering Gold’s record run.

Russian military jets flew over Estonia for 12 minutes on Friday. Although Moscow denied it, US President Donald Trump has said America would come to the defence of Poland and the Baltic states if Russia were to attack.

Interestingly, in the past fortnight, Russian drones and fighter jets have entered Estonian, Polish and Romanian airspace as the Kremlin’s war on Ukraine continues.

Looking ahead, the US preliminary Manufacturing PMI is seen falling to 52 in September from 53 in August, while the Services PMI is expected to decline to 53.9 in the same period versus 54.5 previous.

Disappointing PMI readings could revive US economic concerns and ramp up the odds of further easing by the Fed, boding well for the non-interest-bearing Gold and vice-versa.

Gold price technical analysis: Daily chart

The daily chart shows that the 14-day Relative Strength Index (RSI) remains within the overbought territory, currently descending to 76.

If the pullback picks up steam, the initial support is seen at the $3,700 threshold, below which the previous day’s low of $3,684 will offer some comfort.

Further down, the $3,650 psychological barrier could come to the rescue of buyers.

Conversely, buyers need acceptance above the $3,750 region to extend the record rally toward the $3,800 round level.

Economic Indicator

S&P Global Manufacturing PMI

The S&P Global Manufacturing Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging business activity in the US manufacturing sector. The data is derived from surveys of senior executives at private-sector companies from the manufacturing sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the US Dollar (USD). Meanwhile, a reading below 50 signals that activity in the manufacturing sector is generally declining, which is seen as bearish for USD.

Read more.

Next release: Tue Sep 23, 2025 13:45 (Prel)

Frequency: Monthly

Consensus: 52

Previous: 53

Source: S&P Global

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to PremiumSign In

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

More from Dhwani Mehta
Share:

Editor's Picks

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.
 

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.