Gold has steadied after a brief dip earlier this week, with XAU/USD holding above US$3,627 and retesting the US$3,650 mark in Friday trade. The resilience sets bullion on track for yet another green week - its fifth straight week of gains, an impressive run despite shifting signals from the U.S. Federal Reserve and renewed strength in the U.S. dollar.
The Fed delivered the expected 25bps rate cut this week, but Chairman Jerome Powell’s cautious tone suggested that any future moves in the cash rate remain data-dependent. Markets had hoped for clearer guidance on policy easing, but Powell framed the cut as “risk management.”
U.S. data added to the mix: welcoming to markets, jobless claims eased back after spiking to multi-year highs, and the Philadelphia Fed Manufacturing Index surged well above expectations. These data points combined gave the greenback some momentum as traders unwound short positions.
Even so, gold’s ability to hold firm while the dollar rebounds demonstrates the underlying demand for the metal, particularly as global trade headlines and central bank policies continue to cloud the outlook.
On the charts, the 14-day RSI has cooled from overbought territory but remains in a bullish zone. If buying pressure builds, gold could retest the record high of $3,708, with a daily close above that level opening the door to US$3,750.
Immediate resistance remains at US$3,650, while support sits at US$3,627 and then US$3,600. A break lower would expose last week’s low of US$3,578.
The sustained strength in bullion comes as investors increasingly view gold not just as a hedge against uncertainty, but also as a core portfolio stabiliser. For Australians, access to physical gold exposure is now easier than ever through tokenised assets like AUS (gold-backed) and AGS (silver-backed). These tokens offer the security of 100% backed bullion while delivering the flexibility of digital markets a modern way to hold timeless stores of value.
With the Fed balancing caution against markets eager for cuts, the U.S. dollar’s swings will remain the key driver of near-term gold price action. For now, the trend is clear: gold continues to attract steady demand and is edging closer to retesting record highs.
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