- Gold prices (XAU/USD) have soared, reaching a six-month high, with a more than 0.50% increase in the early North American session.
- US economic data indicates a 6.1% YoY increase in home prices for September, as the Federal Housing Finance Agency (FHFA) reported.
- Speculation is growing that the Federal Reserve may halt interest rate hikes, contributing to the rise in Gold’s price.
Gold price climbs to a six-month high, more than 0.50% on Tuesday, early in the North American session, as the Greenback remains on the defensive, undermined by falling US Treasury bond yields. At the time of writing, the XAU/USD exchanges hands at $2025, after bouncing from daily lows of $2011.79.
XAU/USD reaches $2028.01 as the market anticipates potential Fed rate cuts
The market mood shifted sour as participants await remarks from some US Federal Reserve (Fed) officials during the day. The US economic data revealed home prices, which expanded at a 6.1% YoY pace in September, according to the Federal Housing Finance Agency (FHFA). The report showed the cost of mortgage loans has fallen as the Fed kept rates unchanged for the last two meetings. Speculations are mounting that the US central bank is done raising interest rates, triggering a fall in US Treasury bond yields.
In the meantime, money market futures have priced in 85 basis points of rate cuts for the next year. Therefore, the US Dollar Index (DXY), which measures the performance of the buck against six currencies, is treading water, drops 0.22%, at 102.97. The US 10-year Treasury bond yield is virtually unchanged at 4.40%.
Ahead in the calendar, the Chicago Fed President Austan Goolsbee is expected to deliver some remarks at around 15:00 GMT. At the same time, the Conference Board is expected to release November’s consumer confidence, awaited at 101, which suggests a slim deterioration compared to October’s 102.6 data, along with Richmond’s Fed Manufacturing Index.
XAU/USD Price Analysis: Technical outlook
Gold’s daily chart portrays the yellow metal as upward biased, with bulls in charge and eyeing the April 23 swing high at $2048.15, before challenging the all-time high at $2081.82. A decisive breach of those levels will put into play, the $2100 figure. On the other hand, bears must bring prices below October 27, the latest cycle high at $2009.42, before extending its losses to the $2000 mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD slumps to near 1.1700 on firmer US Dollar, FOMC Minutes in focus
The EUR/USD pair tumbles to near 1.1705 during the Asian trading hours on Wednesday. The Euro weakens against the Greenback as renewed tariff threats from US President Donald Trump unsettle markets. Traders await the FOMC Minutes, which will be released later on Wednesday.
GBP/USD remains below 1.3600 due to risk-off mood, UK fiscal concerns
GBP/USD extends its losing streak, trading around 1.3580 during the Asian hours on Wednesday. The pair depreciates as the US Dollar gains ground amid increased risk aversion. On Tuesday, US President Donald Trump told reporters at a White House cabinet meeting to impose a 50% tariff on Copper imports but he did not say when the tariff would take effect.
Gold price slides further below $3,300, over one-week low amid a firmer USD
Gold price remains under some selling pressure amid reduced bets for a Fed rate cut in July. The USD stands firm near a two-week high and contributes to the commodity’s offered tone. Tariff jitter weigh on investors’ sentiment, though it does little to impress the XAU/USD bulls.
Bitcoin, Ethereum and Ripple holds ground while ETH and XRP eye further gains
Bitcoin, Ethereum, and Ripple present a mixed but optimistic outlook midweek as BTC holds steady while ETH and XRP show signs of renewed bullish momentum. BTC is stabilizing at a critical support level; meanwhile, ETH and XRP are eyeing a move toward higher targets.
New US tariffs target Asia, but some countries stand to gain
President Trump’s new tariffs are higher than expected for most Asian economies. Moreover, most countries will face additional tariff rates on transshipments. The new announcements are silent on Singapore, India and the Philippines, which might stand to benefit from tariff concessions if negotiations progress favourably.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.