Fed Signals No Rate Cuts Until Sept – Gold Under Pressure

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Fed’s Interest Rate Outlook:

- Two senior Federal Reserve officials – New York Fed President John Williams and Atlanta Fed President Raphael Bostic – signaled that the Fed is unlikely to cut interest rates before September 2025.
- The Fed needs more time to assess the economic impact of new trade policies from the Trump administration.
- Trade tariffs and ongoing negotiations are creating major uncertainties, making it difficult for businesses and households to plan financially.
- The probability of a rate cut in June has dropped to just 10%, and expected rate cuts for 2025 have been revised down from four to only two.

Impact on Global Gold Prices:

✅ 1. Short-term – Downward Pressure:
Prolonged high interest rates → stronger US dollar → gold prices face downward pressure as gold yields no interest.

🔄 2. Medium-term – Mixed Outlook:
- If trade talks fail and tariffs increase, leading to economic and inflation risks → gold may benefit as a safe-haven asset.
- Conversely, if trade tensions ease and inflation stays under control, expectations for rate cuts will decline further → gold may continue facing selling pressure.

💡 Short-Term Trade Scenarios:
SELL XAU/USD Zone : 3249 - 3252
💰 TP : 3247 – 3242
🚨 SL $3257
BUY XAU/USD Zone: 3190
💰 TP : 3195 – 3200
🚨 SL $3185

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