Looking ahead, the path of gold prices will depend largely on how the Fed balances inflation control with economic growth. If inflation continues to cool and economic momentum slows, markets may expect rate cuts, which could support gold over the medium term.On the other hand, if inflation remains stubborn or economic data stays strong, the Fed may delay easing. In that case, gold could face resistance as yields and the Dollar remain supported. This is why traders closely watch inflation reports, employment data, and comments from Fed officials.
From a Forex viewpoint, shifts in the Dollar’s trend will remain critical. A sustained Dollar decline could create a stronger foundation for gold, while renewed Dollar strength may limit rallies. Cross-currency movements and global risk sentiment can also influence gold indirectly.
In summary, gold sits at the intersection of interest rates, currency movements, and market confidence. As long as Fed policy remains the key driver of global liquidity, its decisions and signals will continue to shape both the gold market and the broader Forex landscape.
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