Gold Prices Steady as Investors Anticipate Dovish Fed Shift

Monetary Policy Tailwinds

The Federal Reserve has adopted a more dovish tone in recent commentaries as US economic data becomes increasingly uncertain. Expectations for a 25 basis points cut in the upcoming meeting have risen to over 85% according to market trackers. Gold prices have responded by climbing steadily, marking what could be a fifth consecutive monthly increase as lower rates reduce the opportunity cost of holding non-yielding bullion.

Safe Haven and Technical Support

Beyond interest rates, gold is finding significant support from its status as a hard asset in a fractured world. Investors are increasingly seeking alternatives to traditional currencies as US debt concerns grow. Technically, the metal looks re-energized after a brief period of consolidation around the $4,200 level. Analysts suggest that the next leg of the rally could be a 2026 story, with $4,500 being a key psychological target for long-term bulls.