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Gold hits fresh record high near $3700 before Fed's decision
AI Summary
- Gold hits a new record high near $3,700 an ounce before the Federal Reserve's decision
- Traders are pricing in a 95% probability of a 25-basis-point rate cut at the September meeting
- Technical outlook suggests gold could test $3,700 and potentially move higher if the Fed provides dovish guidance, but profit-taking may occur if a hawkish tone is struck
Gold (XAU/USD) rose on Monday to a new record high of $3,685 an ounce, surpassing the previous peak of $3,674, and moving closer to the $3,700 mark as markets await this week’s Federal Reserve policy decision.
The precious metal continues to gain as traders price in an almost certain rate cut at the September meeting. The CME FedWatch tool shows a 95% probability of a 25-basis-point cut, versus just 5% odds of a larger 50-basis-point cut.
Technical outlook for gold:
Gold appears poised to test the $3,700 level in the near term, though the future path will depend on the outcome of the Fed meeting. If the decision is accompanied by dovish guidance, prices could break above this level and pave the way toward $3,750 and $3,800. However, if the Fed strikes a hawkish tone, profit-taking could emerge, pushing gold lower.
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