NextFin news, Gold prices (XAU/USD) maintained a positive bias for the fourth consecutive day on Wednesday, September 24, 2025, trading near record highs despite a slight intraday retreat. This movement occurred amid growing market expectations that the U.S. Federal Reserve will implement additional interest rate cuts later this year, supporting demand for the non-yielding precious metal.
The Federal Reserve's cautious stance, expressed by Chair Jerome Powell in recent remarks, highlighted the central bank's balancing act between controlling inflation and managing a weakening labor market. Powell warned against easing monetary policy too aggressively, which could leave inflation unaddressed and require policy reversal. These comments contributed to a modest rebound in the U.S. dollar after a two-day decline, which in turn limited gold's upside potential.
Meanwhile, geopolitical tensions intensified, providing further support to gold as a safe-haven asset. NATO issued warnings to Russia following recent provocations and airspace violations involving Estonia, Poland, and Romania. Concurrently, ongoing military actions by Israel in Gaza and a United Nations report indicating Israel's intent to establish permanent control over Gaza and the West Bank heightened concerns about a broader Middle East conflict.
Market participants also awaited key U.S. economic data releases, including New Home Sales, final Q2 GDP, Durable Goods Orders, and the Personal Consumption Expenditure (PCE) Price Index, which are expected to influence both the U.S. dollar and gold prices in the near term.
Despite gold's recent rally defying overbought technical conditions, the metal faced resistance near the $3,800 per ounce level. A failure to sustain gains above this threshold could signal a potential short-term pullback, with support expected around the $3,710 to $3,700 range. Traders appeared cautious, awaiting a clear breakout above $3,800 before committing to further bullish positions.
In currency markets, the U.S. dollar showed strength against major currencies, particularly the Japanese yen, following Powell's remarks. This dollar uptick contributed to capping gold's gains on Wednesday.
In summary, on Wednesday, September 24, 2025, gold prices hovered near all-time highs in global markets, underpinned by expectations of Federal Reserve rate cuts and heightened geopolitical risks, while a modest U.S. dollar rebound and technical overbought conditions tempered further advances.
Sources: FXStreet (https://www.fxstreet.com/news/gold-remains-close-to-all-time-high-amid-fed-rate-cut-bets-and-geopolitical-risks-202509240503), Reuters (https://www.reuters.com/world/india/gold-eases-record-high-investors-book-profits-weigh-powells-comments-2025-09-24/)
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