Gold Price Forecast: Buy Dips Above $3,345 as Dollar Weakens
Gold prices surged to a four-month high near $3,490/oz on a weaker dollar, falling Treasury yields and safe-haven demand amid Fed rate-cut expectations. Spot XAUUSD reclaimed support at $3,470, reinforcing a buy-the-dip strategy above the $3,345–$3,350 zone. Key technical buy zones lie at $3,447–$3,436 and $3,416–$3,404. A breakout above $3,490 could trigger retests of $3,500 and pave the way for new all-time highs.
Traders are eyeing a slate of U.S. economic data—ISM manufacturing and services PMIs, JOLTS job openings, ADP payrolls and the September U.S. nonfarm payrolls—for signals on labor market strength. Stronger wages or services could cap gold’s advance, while softer jobs figures may drive prices higher.
In summary, bullish momentum remains intact for gold. The recommendation is to maintain a buy-on-dips approach as long as XAUUSD holds above $3,345, targeting $3,500 and beyond.
Neutral
The gold rally reflects growing Fed rate-cut expectations and market uncertainty, signaling potential liquidity that can support risk assets like crypto over the medium term. However, in the near term, heightened safe-haven flows into gold may divert capital from cryptocurrencies. Historically, dovish Fed stances in 2020 boosted both gold and crypto, but initial risk-off moves often favor gold before funds rotate back into digital assets. Thus, while a dovish Fed outlook is ultimately positive for crypto liquidity, the immediate capital shift toward gold creates offsetting pressures, resulting in a neutral impact on the crypto market.