Gold steadies above $4,000 after the Fed’s 25 bps rate cut boosts market sentiment. Traders monitor U.S. data and BoJ updates as momentum stabilizes.
🌏 Asia Session
Gold traded slightly higher in early Asia, holding at $4,028.77 (+0.11%), extending its post-Fed rebound as investors digested the first rate cut since early 2024.
The Federal Reserve’s 25 bps cut improved liquidity sentiment, but Chair Powell’s cautious tone reminded markets that future cuts — including the December decision — remain uncertain.
Asian equities were mostly positive, while the U.S. dollar index (DXY) eased toward 105.30, lending support to bullion.
💡 Insight:
According to FXStreet-ID, gold continues to face “key catalysts around the $4,000 zone”, with traders watching whether the metal can sustain momentum above its 4-hour moving averages ($4,006 – $4,113).
The fact that prices are holding steady above $4,000 shows that market participants are re-accumulating positions, but without strong conviction until the next macro trigger — such as Friday’s NFP or BoJ policy update.
🌍 Europe & New York Outlook
With the Fed pivoting to a more balanced tone, traders are refocusing on U.S. economic data and the Bank of Japan’s next steps.
A dovish BoJ or weaker-than-expected U.S. data could help gold reclaim $4,050 – $4,080, while strong U.S. figures may cap upside momentum.
Technically, FXStreet notes that as long as gold holds above $3,947 (SMA 200), the medium-term structure remains constructive despite recent volatility.
💡 Insight:
Markets appear to be in a “post-cut adjustment phase,” where traders test whether this Fed pivot will mark the beginning of a sustained easing cycle or just a one-off move.
Gold’s slow grind above $4,000 suggests investors prefer gradual accumulation rather than aggressive buying.
🇪🇺 Eurozone: CPI Flash Estimate
🇺🇸 U.S.: Core PCE & Employment Cost Index (Key inflation gauges)
📊 Key Levels (Oct 31, 2025)
| Pair | Resistance 1 | Support 1 |
|---|---|---|
| XAUUSD | 4,080 | 3,947 |
| DXY (Index) | 105.60 | 104.90 |
| EURUSD | 1.1820 | 1.1700 |
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