Gold (XAUUSD) continues its rally: Fed rate outlook provides support
Gold (XAUUSD) prices stand at 3,550 USD by the end of the week. Pressure on the Fed is opening new opportunities for the precious metal. Find more details in our analysis for 5 September 2025.
XAUUSD forecast: key trading points
Gold (XAUUSD) prices continue to climb, hitting new record highs
Expectations of more aggressive Federal Reserve rate cuts provide strong support for gold
XAUUSD forecast for 5 September 2025: 3,564 and 3,578
Fundamental analysis
Gold (XAUUSD) rose to 3,550 USD per ounce on Friday and remains near record highs, showing a weekly gain of over 3%. Support for the metal comes from expectations of Federal Reserve rate cuts and increased demand for safe-haven assets.
Weakness in the labour market – falling job vacancies, rising layoffs, and an increase in initial jobless claims to a two-month high – has strengthened expectations of Fed easing. The market is now pricing in not only a September rate cut but also up to three moves by the end of the year. This is favourable for gold, as lower rates reduce the opportunity cost of holding a non-yielding asset.
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