{"id":33524,"date":"2025-10-30T09:59:59","date_gmt":"2025-10-30T01:59:59","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=33524"},"modified":"2025-10-30T09:59:59","modified_gmt":"2025-10-30T01:59:59","slug":"gold-rises-as-dollar-softens-after-fed-rate-cut","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/gold-rises-as-dollar-softens-after-fed-rate-cut\/","title":{"rendered":"Gold Rises as Dollar Softens After Fed Rate Cut"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/Image_fx-2025-10-02T112304981-1024x559.png\" alt=\"\" class=\"wp-image-31436\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Spot gold<\/strong> rose <strong>0.4% to $3,942.97<\/strong>, while <strong>December futures<\/strong> eased <strong>1.1% to $3,955<\/strong>.<\/li>\n\n\n\n<li>The <strong>Fed cut rates by 25 basis points<\/strong> to a target range of <strong>3.75%\u20134.00%<\/strong>.<\/li>\n\n\n\n<li><strong>Dollar index<\/strong> slipped <strong>0.2%<\/strong>, supporting gold\u2019s short-term rebound.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Gold prices rose modestly on Thursday after the <strong>Federal Reserve cut interest rates<\/strong> by a quarter percentage point for the second time this year, reinforcing the appeal of safe-haven metals.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Gold edged higher after four days of losses, with traders scaling back bets on more Federal Reserve easing after Chair Jerome Powell downplayed the likelihood of a December interest-rate cut <a href=\"https:\/\/t.co\/P882J8THyp\">https:\/\/t.co\/P882J8THyp<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1983682521138135361?ref_src=twsrc%5Etfw\">October 29, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>A weaker U.S. dollar also contributed to the uptick, while traders continued to monitor the upcoming <strong>Trump\u2013Xi meeting<\/strong> in South Korea for trade developments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Fed Policy and Dollar Moves<\/h2>\n\n\n\n<p>The <strong>Fed\u2019s decision<\/strong> to reduce the benchmark rate to <strong>3.75%\u20134.00%<\/strong> aligned with market expectations.<\/p>\n\n\n\n<p>Chair <strong>Jerome Powell<\/strong> signalled a divided outlook among policymakers, warning markets not to assume further cuts this year. The tone was less dovish than anticipated, tempering gold\u2019s initial surge.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Jerome Powell\u2019s blunt warning that investors need to rein in expectations for a December interest-rate cut underscored a growing tug-of-war among US policymakers who are opposed in their outlooks for jobs and inflation <a href=\"https:\/\/t.co\/nliLQ2zWjF\">https:\/\/t.co\/nliLQ2zWjF<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1983669799973491161?ref_src=twsrc%5Etfw\">October 29, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Still, the <strong>U.S. <\/strong><strong>dollar<\/strong><strong> index (USDX)<\/strong> fell <strong>0.2%<\/strong> after hitting a two-week high on Wednesday, easing pressure on bullion and making it more affordable for holders of other currencies.<\/p>\n\n\n\n<p>Analysts noted that the dollar\u2019s retreat helped offset the impact of Powell\u2019s cautious tone, allowing gold to stabilise above the <strong>$3,940<\/strong> level.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Global and Trade Factors<\/h2>\n\n\n\n<p>Attention has now shifted to the <strong>Trump\u2013Xi summit<\/strong>, with markets hoping for a temporary truce in the ongoing trade dispute.<\/p>\n\n\n\n<p>Meanwhile, U.S. President <strong>Donald Trump<\/strong> finalised details of a new trade deal with South Korea\u2019s President <strong>Lee Jae Myung<\/strong>, further shaping the region\u2019s diplomatic landscape.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Donald Trump and Xi Jinping are poised to finalize a trade truce when they meet in South Korea <a href=\"https:\/\/t.co\/1DPtLJfDQv\">https:\/\/t.co\/1DPtLJfDQv<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1983634086901023024?ref_src=twsrc%5Etfw\">October 29, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>However, <strong>tensions between Washington and Beijing remain<\/strong>, with longer-term trade frictions and technology controls expected to persist beyond any near-term agreement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>Gold (<strong>XAU\/USD<\/strong>) edged higher by <strong>0.66%<\/strong> to <strong>$3,954.73<\/strong>, stabilising after a sharp two-day sell-off that saw prices retreat from record highs above <strong>$4,380<\/strong>. The rebound reflects cautious bargain-hunting as traders weigh shifting expectations around U.S. monetary policy and persistent global risks that continue to underpin safe-haven demand.<\/p>\n\n\n\n<p>From a <strong>technical perspective<\/strong>, gold is attempting to reclaim its footing above the <strong>$3,950<\/strong> level after finding near-term support around <strong>$3,850<\/strong>, aligning closely with the <strong>30-day moving average<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-40-1024x458.jpg\" alt=\"\" class=\"wp-image-33525\" \/><\/figure>\n\n\n\n<p>This zone now acts as a critical pivot point: holding above it could allow for a recovery toward <strong>$4,050\u20134,100<\/strong>, while a sustained break below may trigger a deeper retracement toward <strong>$3,800<\/strong>.<\/p>\n\n\n\n<p>Despite the recent pullback, the broader uptrend remains intact. The moving averages (5, 10, and 30) are still aligned in a bullish configuration, though short-term momentum has cooled.<\/p>\n\n\n\n<p>The <strong>MACD<\/strong> indicator confirms this moderation, with the MACD line now below the signal line and the histogram showing waning bearish pressure, suggesting that sellers are losing momentum and that consolidation could precede a new directional move.<\/p>\n\n\n\n<p>Fundamentally, the outlook remains mixed. While <strong>stronger U.S. data<\/strong> has tempered bets on aggressive rate cuts, <strong>safe-haven flows<\/strong> remain resilient amid global uncertainty and slowing global growth signals.<\/p>\n\n\n\n<p>The <strong>Fed\u2019s upcoming policy remarks<\/strong> will be key in determining whether the recent correction deepens or if gold resumes its longer-term bullish trajectory.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Outlook<\/h2>\n\n\n\n<p>While gold remains underpinned by a lower-rate environment, near-term direction will hinge on the <strong>Trump\u2013Xi meeting<\/strong> and upcoming <strong>U.S. employment data<\/strong>. Traders expect volatility to persist as markets weigh monetary easing against potential trade progress.<\/p>\n\n\n\n<p>Despite recent outflows from the <strong><a href=\"https:\/\/www.spdrgoldshares.com\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">SPDR Gold Trust<\/a><\/strong>, bullion\u2019s long-term outlook remains supported by <strong>sluggish growth<\/strong>, <strong>persistent inflation<\/strong>, and <strong>central bank diversification<\/strong>.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Create your live VT Markets account<\/a> and <a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*5vyjdn*_gcl_au*Njc1MzM0NjY0LjE3NTEzNTM4MTc.*_ga*MjA5ODA0NDIzNC4xNzI3OTE1ODQ1*_ga_J26NL1ZVX7*czE3NTE4NzkxMDYkbzMwOCRnMSR0MTc1MTg3OTExOCRqNDgkbDAkaDA.*_ga_6XQ8153GYW*czE3NTE4NzkxMDgkbzU3JGcxJHQxNzUxODc5MTE4JGo1MCRsMCRoMA..*_ga_BG6LYEHPX1*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMTgkajUwJGwwJGgw*_ga_J8BRGZSREX*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_7CG6454YR5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_69Z54R4H9N*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_CY2VCKFC3C*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_TXZ07R2C21*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_17TMGY9BBE*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_MWDVVSEVL5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_2QCC3S2748*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_E7D2PCX624*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_XJ4037XKK6*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_EJCVQDC7VT*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjYkajQyJGwwJGgw\" target=\"_blank\" rel=\"noopener\" title=\"\">start trading<\/a> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices edged higher on Thursday, supported by a weaker dollar and the Federal Reserve\u2019s second rate cut of the year. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":31436,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[6],"class_list":["post-33524","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-gold"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/33524","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=33524"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/33524\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/31436"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=33524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=33524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=33524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}