Gold Drops Ahead of Fed Rate Cut. What Is Next for XAU/USD?
Gold prices () stepped back from last week’s record highs with a big Federal Reserve (Fed) announcement just days away. Explore how this might affect your trades in our breakdown.
- Events. Gold dipped below $3,650 per ounce on Monday as investors booked profits ahead of a much-anticipated later this week.
- Background. Traders are now expecting a 0.25% rate cut due to signs of a weakening U.S. labour market. Lower rates tend to weaken the , which usually supports gold prices. But profit-taking and uncertainty are pressuring the metal for now.
- Possible outcome. If the Fed signals more cuts ahead, gold could regain momentum. However, if the Fed takes a more cautious stance, XAU/USD may stay under pressure.
Watch for key data on and industrial production before the Fed announcement. Also, follow U.S.–China talks. These factors will directly affect the dollar and hence XAU/USD.
Euro Holds Steady, but Central Banks Could Shake Things Up. Here Is Why
The euro () stayed largely flat as markets seemed unfazed by a major credit downgrade for France. But calm could soon become chaos—find out the reasons in our analysis.
- Events. The euro dipped just 0.03% to $1.1733 on Monday as the Fitch agency downgraded France’s credit rating to its lowest level on record. Meanwhile, the US dollar steadied ahead of several global interest rate decisions.
- Background. France lost its AA– rating due to political instability and rising debt. However, traders’ attention was mostly occupied by the upcoming rate decisions from the Federal Reserve (Fed), Bank of Japan, Bank of England, and others.
- Possible outcome. Expectations of a Fed rate cut have recently put pressure on the dollar. If the Fed cuts rates as expected, it could further weaken the USD, potentially boosting the euro. However, surprises from major central banks could shake currency markets.
This is a week to stay alert. Rate decisions often trigger sharp moves, especially if outcomes differ from market expectations. Watch for volatility and review your risk levels before each major announcement.
Pound Grew Slightly Ahead of Rate Cut Moves. Here Is What Traders Need to Know
The pound () gained modestly against the dollar as markets braced for a likely Federal Reserve (Fed) rate cut this week. However, the trend might reverse with weak UK data in the mix. Find the full breakdown below.
- Events. GBP/USD is trading slightly higher around 1.3555, supported by growing expectations of a U.S. interest rate decision on Wednesday.
- Background. Weakening U.S. labour market has increased the odds of a Fed rate cut, which typically puts pressure on the dollar. At the same time, disappointing U.K. and manufacturing data raise concerns about economic growth and the potential for further rate cuts from the Bank of England (BoE).
- Possible outcome. If the Fed stays cautious, the dollar could weaken further, boosting GBP/USD. However, any fresh U.K. economic worries or signals from the BoE could cap or reverse gains.
Watch both sides of the pair. Keep a close eye on Fed and BoE decisions—if both central banks signal easing, GBP/USD may stay range-bound.