Gold Price Forecast: XAU/USD jumps to near $4,080 as Fed rate cut in December looks likely

💡 DMK Insight

Gold’s recent surge to nearly $4,080 is a direct response to shifting Fed rate expectations. With the market anticipating another interest rate cut in December, gold often becomes a safe haven, attracting both retail and institutional investors. This 2% increase signals a potential breakout, especially if it can maintain momentum above key resistance levels. Traders should keep an eye on the $4,100 mark, as a sustained move above this could trigger further buying interest. Conversely, if gold fails to hold these gains, a pullback could test support around $4,000, which would be critical for maintaining bullish sentiment. It’s also worth noting that this bullish sentiment in gold could have ripple effects on related assets like silver and mining stocks. If the Fed’s decision aligns with market expectations, we could see a broader rally in precious metals. However, traders should remain cautious of volatility, especially as we approach the December meeting, where any unexpected announcements could lead to sharp price movements.