Several members of the FOMC expressed a lack of confidence in lowering borrowing costs, and traders reduced their expectations for another Fed rate hike. This, in turn, helped the U.S. dollar gain some positive momentum at the start of the new week, becoming a key factor weighing on non-interest-bearing gold. However, concerns over weakening economic momentum due to the longest government shutdown in U.S. history kept alive the possibility of further monetary easing by the Fed, which may limit the dollar's gains. Additionally, as market risk appetite eases, this could provide some support for the safe-haven asset gold and help limit further downside. Traders may avoid taking new directional bets for now and instead wait for the release of the FOMC meeting minutes on Wednesday. Moreover, the October nonfarm payrolls data, due on Thursday, will also influence the dollar's movement and, by extension, commodity prices.

Personnel changes within the Federal Reserve, along with remarks from officials, heightened concerns about the independence of monetary policy. Former White House economic adviser Kevin Hassett expressed willingness to take over as Fed Chair and advocated for significant rate cuts, while dovish-leaning Atlanta Fed President Raphael Bostic unexpectedly announced his resignation in February next year. These events sparked speculation that future leadership changes might lean more dovish. Nevertheless, several current Fed officials maintained a hawkish tone during the week, emphasizing that the pause in rate cuts was not due to insufficient data but rather caution over the persistence of inflation. These statements dampen market expectations for a December rate cut from 66% to 43%. The tightening of rate path expectations further diminished the appeal of non-yielding assets, such as gold. At the same time, risk assets such as U.S. stocks, Treasuries, and cryptocurrencies also came under pressure, leading to synchronized cross-market sell-offs that intensified downward pressure on gold prices.

Based on the weekly chart, the Bollinger Bands are expanding upward. Last week's long upper shadow pattern signaled that a potential trend reversal could occur at any time. In addition, the MACD is about to form a death cross. If confirmed, prices are likely to adjust toward the EMA 12 level, around $3,930. The RSI stands at 69, indicating strong bullish sentiment; however, as prices are gradually declining, a correction is likely to emerge at any time. Regarding the daily chart, the MACD's bullish momentum is gradually weakening, yet prices have failed to make new highs — a sign of a potential bearish divergence. This increases the likelihood of continued short-term declines. Key support levels are the Bollinger Lower Band and the EMA 50, at 3,936, respectively. The RSI is at 52, placing the price in a neutral zone, although price highs continue to trend downward. It is recommended to sell at highs.

Trading direction: Sell

Entry price: 4070

Target price: 3600

Stop loss: 4390

Support: 3900/3800/3600

Resistance: 4380/4500/5000

Gold prices retreated from their recent surge on Friday, slipping from Thursday’s three-week high as shifting macro sentiment, firmer yields and a recovering U.S. Dollar forced bulls to give back early gains. Spot gold (XAU/USD) was last seen trading near $4,133, easing from the previous session’s spike to roughly $4,245, as investors reassessed how much room the metal has to advance in an environment where safe-haven demand is losing some of its urgency.

The market’s tone shifted noticeably following the resolution of the U.S. government shutdown, which removed one of the week’s most potent tailwinds for gold. The fiscal clarity reduced immediate risk aversion and allowed investors to rotate back into select risk assets, trimming the appeal of defensive holdings. At the same time, investors have been digesting a series of cautious remarks from Federal Reserve officials, who have collectively pushed back against growing expectations of a December rate cut. The messaging has forced traders to temper expectations for early monetary easing, causing Treasury yields and the U.S. Dollar to recover after a period of softness.

This dynamic has created a more challenging environment for bullion. The non-yielding asset typically struggles when rate-cut hopes are scaled back, and the Fed’s reluctance to endorse imminent easing has triggered a recalibration across interest rate futures. The market now appears more aligned with a scenario where the central bank leans on incoming data rather than pre-committing to policy shifts. That uncertainty adds a layer of caution to gold’s outlook, even as broader risk sentiment remains fragile.

Despite the latest pullback, downside pressure has been moderated by persistent unease in global equity markets. Concerns about excessive valuations in the AI sector have once again rattled investor sentiment, contributing to weaker risk appetite across major indices. Tech-heavy benchmarks have experienced renewed selling pressure, and the sense that AI-linked valuations may be overstretched continues to draw capital into safe-haven assets during intraday swings. This push-and-pull between improving fiscal clarity on one hand and ongoing equity market fragility on the other is shaping a more complex trading environment for gold.

Investors are now focused intensely on the release of delayed U.S. economic data, which markets expect will influence the Fed’s next steps. Data covering inflation, employment and consumer spending will help determine whether the central bank maintains a cautious tone or moves closer to signaling easing in early 2025. From my perspective, gold’s medium-term trajectory remains broadly constructive, supported by an eventual policy shift, potential softening in global growth and ongoing geopolitical realignments. However, the near-term picture looks choppy, with every upside push constrained by the Fed’s communication strategy and every downside attempt cushioned by sporadic bouts of risk-off sentiment.

From a technical standpoint, gold has broken below its rising trendline, signaling a weakening in bullish momentum and increasing the likelihood of a broader corrective phase. The rejection from the upper consolidation area serves as confirmation that buyers are beginning to fatigue, allowing sellers to regain control around the $4,112–$4,130 region. The market is now watching how price behaves around successive retest regions. The first area of interest sits between $4,155 and $4,160, which represents the immediate supply created after the trendline breakdown. A rejection there would reinforce the current bearish undertone and could renew momentum toward lower supports.

Should the metal push higher, a more significant battleground emerges around $4,175 to $4,180, where a previous support structure has flipped into resistance. This region carries heavier technical significance because bulls would need a decisive break above it to invalidate the short-term bearish structure. Without such a breakout, sellers are likely to defend the zone aggressively, potentially triggering another wave of downside pressure. In essence, gold remains trapped between macro uncertainty and key technical barriers, leaving traders with a market that can turn sharply on small shifts in sentiment or data surprises.

SELL GOLD

ENTRY PRICE: 4120

STOP LOSS: 4180

TAKE PROFIT: 4045

The latest UK labor market and wage data indicate a clear loosening in the job market: the three-month rolling unemployment rate has risen to around 5%, while both the number of employees on payrolls and wage growth have slowed. This reinforces market perceptions of economic weakness and expectations for monetary easing.

Meanwhile, the preliminary GDP data for the third quarter showed a modest rebound in nominal growth, but it remains a tepid recovery that is unlikely to alter the overall slowdown trend. PMI data for the services and manufacturing sectors suggested divergence, but neither sector displayed strong or sustained expansion signals.

On the inflation front, core inflation has eased from its highs and is now approaching 3.8%. As a result, the Bank of England recently decided by a narrow majority to keep the benchmark interest rate at 4% during its last meeting. However, the BoE explicitly stated that if inflation continues to decline, it would consider starting a rate-cutting cycle in the near term. Markets have already anticipated the possibility of a rate cut in December or later.

Regarding the daily chart, GBP/USD broke down below the support zone between 1.3190 and 1.3000. In recent days, it rebounded toward the resistance level near 1.3190, but today's candle closed as a bearish body, showing weak downside movement. The overall candlestick structure now indicates a confirmed breakdown with a bounce that serves as a continuation pattern, displaying a notable strengthening of short-term bearish momentum. The pair is expected to retest the 1.3000 support level. A break below this level would further open the door to a downward move toward 1.2700.

Selling at highs is recommended.

Trading direction: Sell

Entry price: 1.3150

Target price: 1.2750

Stop loss: 1.3220

Valid Until: November 28, 2025, 23:00:00

Support: 1.3000/1.2700

Resistance: 1.3215/1.3248

Influenced by rising food prices, Japan's wholesale price index in October exceeded market expectations, indicating persistent inflationary pressures and potentially increasing the Bank of Japan's (BOJ) difficulty in resuming interest rate hikes. Data shows that due to high rice and other food prices, Japan's corporate goods price index rose by 2.7% year-over-year in October, slightly below September's 2.8% but still surpassing the forecasted 2.5%. Although import prices in yen declined by 1.5% YoY, rising domestic food and non-ferrous metal prices contributed to the overall increase in wholesale prices. Analysts suggest that if Prime Minister Sanae Takaichi's government proceeds with policies to reduce utility costs as part of stimulus measures, wholesale inflation could slow. However, expansionary fiscal policies may also weaken the yen, elevating import costs and maintaining upward pressure on inflation. Kazuo Ueda further emphasized in the Diet that domestic consumer resilience, the tightening labor market driving wage growth, and the resulting moderate increases in wages and prices constitute a positive feedback loop. Aside from raw material cost inflation, rising prices in the service sector and other goods reflect underlying economic recovery momentum. He believes that core inflation, excluding temporary factors, is accelerating, indicating that Japan is progressing toward the 2% inflation target. However, the BOJ's policy capacity is constrained by government fiscal expansion. Since ending the monetary easing measures implemented during Kuroda Haruhiko's tenure, the BOJ has raised short-term interest rates twice to 0.5% but has maintained stability to assess impacts from global economic shifts. Analysts suggest that the BOJ is attempting to adjust interest rates toward a neutral level—approximately 1% to 1.5%—though large-scale government expenditure plans and appointments of officials supporting accommodative policies may delay this adjustment. Fiscal expansion has raised market concerns, pushing long-term bond yields higher and contributing to yen depreciation, which in turn escalates import costs and inflationary pressures. Some former policymakers warn that this trend could undermine household purchasing power and threaten the sustainability of Japan's economic recovery.

The U.S. on the other side of the Pacific faces ongoing economic and policy uncertainties. After a record-breaking 43-day government shutdown, the federal government has finally reopened. During the impasse, air traffic was disrupted, food assistance programs were interrupted, and over a million federal employees experienced prolonged unpaid leave. Although Congress approved funding through an appropriations bill extending until the end of January next year, core partisan disagreements remain unresolved. Within the Democratic Party, fissures have emerged over strategies toward the Trump administration, with progressives demanding a tough stance and moderates advocating for pragmatic collaboration. Polling indicates that the shutdown has negatively impacted public opinion for both parties. The Congressional Budget Office estimates a 1.5% decline in U.S. GDP, approximately US$50 billion in delayed expenditures, with US$14 billion of losses deemed irrecoverable. Disruptions to economic data releases have complicated Federal Reserve and investor assessments of the economic outlook, adding uncertainty to holiday spending behavior. In this context, Federal Reserve officials exhibit increased caution regarding future policy adjustments. Federal Reserve Chair Mary Daly indicated that the risks between achieving price stability and employment goals have become balanced, leading to an open stance on the possibility of a rate cut in December. She emphasized that future policy decisions will depend on newly released data, and it is premature to assert a rate cut at this stage. Despite inflation not yet stabilizing at 2%, the labor market shows some signs of softening. Consequently, market expectations for a December rate reduction have decreased significantly from 67% to 47%. Other officials, such as Minneapolis Fed President Kashkari and Boston Fed President Collins, also expressed cautious views, suggesting that policy easing should only occur if employment deteriorates substantially. Federal Reserve Chair Jerome Powell stated that a rate cut in December is "far from certain", citing data uncertainties caused by the government shutdown. Market analysts believe that there is no consensus within the Fed on the next policy direction, with balancing inflation and employment remaining a primary consideration.

In the 1D timeframe, the Bollinger Bands are expanding upward, with the SMAs diverging, indicating an ongoing bullish trend. However, the candlestick pattern forms a wedge, and the MACD momentum is diminishing, while the RSI stands at 62, reflecting strong bullish market sentiment. Nonetheless, the recent highs are progressively declining, suggesting a probable correction to the EMA12 or the middle band of the Bollinger, at levels of approximately 153.8 and 152.8, respectively. In the 4H timeframe, the Bollinger Bands are contracting, and the SMAs are flattening. After the MACD formed a death cross, the MACD line and signal line are beginning to reapproach the zero-axis, currently at a considerable distance, indicating that the correction phase is still underway. The RSI is at 52, signifying that market participants are largely in a wait-and-see stance. Should the price break below the middle Bollinger band, a correction toward the EMA200 at approximately 152.2 is probable; conversely, if the price maintains above the middle band, further upward movement towards 156 is likely. It is recommended to go short initially before going long in the short term.

Trading Direction: Sell

Entry Price: 154.6

Target Price: 151.4

Stop Loss: 156

Support: 150, 148.5, 146.6

Resistance: 155, 156.7, 158.8

A wave of recent commentary from Federal Reserve officials has collectively built a wall of consensus around the idea of "cautious rate cuts." While figures like Daly, Mussarelm, Kashkari, and Hammack have varied slightly in tone—some more hawkish, others more dovish—their core message has been remarkably consistent: policy is now close to neutral, future actions will depend heavily on incoming data, and no preset path is being followed. This unified "verbal intervention" has successfully tempered overly aggressive market expectations for rate cuts. As a result, the U.S. dollar index pulled back, yet gold did not benefit accordingly. The more critical factor is the market's reassessment of the interest rate trajectory, with potential upward revisions to real interest rate expectations undermining the appeal of non-interest-bearing gold. However, it may be premature to interpret the recent pullback in gold as a signal of a trend reversal. First, structural concerns over the credibility of the U.S. dollar are forming a foundational pillar for gold's long-term bullish outlook. European officials have discussed creating alternative dollar liquidity mechanisms outside the Federal Reserve. Although such plans face practical hurdles, the mere intention is symbolic—it reflects growing global apprehension over the weaponization of the dollar and the inward turn of U.S. policy, thereby driving diversification within the international reserve system. Long-term dollar bear Stephen Jen predicts that the U.S. Dollar Index could decline significantly further. If such a scenario unfolds, it would fundamentally bolster the value of gold priced in dollars.

In other news, the longest government shutdown in U.S. history ended on Thursday after President Trump signed a funding bill to reopen the government. The House of Representatives passed the bill earlier in the day by a vote of 222 to 209, with nearly all Republicans and a handful of Democrats voting in favor. Markets anticipate that once the shutdown ends, upcoming U.S. economic data may reveal signs of labor market weakness, which could weigh on the dollar and provide short-term support for dollar-denominated commodities. On Thursday, White House economic advisor Kevin Hassett stated that the October employment report will be released. Still, because no household survey was conducted that month, the unemployment rate will not be published. On the other hand, cautious commentary from Fed officials may continue to pressure gold prices. Boston Fed President Susan Collins struck a cautious tone in expressing her policy view, stating that in the current highly uncertain environment, maintaining the policy rate for some time may be appropriate to balance risks to inflation and employment. Similarly, Atlanta Fed President Raphael Bostic on Wednesday and Cleveland Fed President Loretta Mester on Thursday also signaled a preference for keeping rates unchanged. According to the CME Group's FedWatch Tool, markets are now pricing in a probability of just over 51% that the Fed will cut the benchmark overnight lending rate by 25 basis points at its December meeting—down from 62.9% a day earlier.

Regarding the four-hour chart, the Bollinger Bands are beginning to contract, and the candlestick has formed a doji star pattern, signaling that a potential turning point could emerge at any time. Besides, a death cross is formed with the MACD line and the signal line pulling back toward the zero axis—though they still have some distance to go. This reinforces the signal that the adjustment phase is not yet complete. The RSI stands at 62, reflecting strong bullish sentiment in the market. From a daily perspective, the MACD's bullish momentum is gradually weakening, even as the price fails to make new highs—a classic sign of a bearish divergence. This increases the likelihood of a short-term downward move. Key support levels lie at the lower Bollinger Band and the 50-day EMA, at 3860 and 3935, respectively. With the RSI at 62, the price remains in bullish territory, but the recent highs are gradually lowering. Thus, it is better to sell at highs.

Trading direction: Sell

Entry price: 4190

Target price: 3800

Stop loss: 4500

Support: 3900/3800/3600

Resistance: 4380/4500/5000

Industrial sector activity within the Eurozone showed a modest expansion in September following a contraction in August, according to the latest data released by Eurostat on Wednesday.

Specifically, industrial production across the Euro-area increased by 0.2% month-over-month (MoM) in September. This figure was a notable disappointment, falling short of the market's forecast for a 0.7% surge. For August, the data was also revised lower, showing a steeper decline of 1.1% from the initial reading of 1.2%. On an annual basis, Eurozone industrial production grew by 1.2% over the same period, slightly up from the previous 1.1%, but still substantially lower than the consensus estimate of 2.1%.

In a separate communication, the European Central Bank (ECB) Economic Bulletin reiterated its view that the Eurozone’s growth outlook remains subdued. The bulletin highlighted that domestic demand is holding up reasonably well, supported by an improvement in real incomes. However, it noted that manufacturing and exports continue to face significant pressure due to persistent global weakness and the lingering impact of trade tensions. The ECB also emphasized its expectation for wage growth to soften gradually, while inflation indicators remain close to the 2% target, stressing that future policy decisions will remain data-dependent.

Meanwhile, in the United States, the House of Representatives approved a temporary funding bill late Wednesday by a vote of 222-209. This measure restores government operations until January 30, 2026, with some key departments fully funded through September 2026. Despite this short-term solution, fears of another government shutdown remain a concern as the next deadline approaches in early February 2026.

Federal Reserve officials offered mixed signals regarding the policy trajectory. Minneapolis Fed President Neel Kashkari acknowledged seeing diverse data from the economy but stressed that inflation remains unacceptably high, "around 3%." Conversely, San Francisco Fed President Mary Daly adopted a more cautious tone, stating, "it is premature to say definitively that there will not be a cut or definitely that there will be a cut" in December. She underscored that the Fed's dual mandate is currently in balance but pointed to a discernible deterioration in the labor market.

Further data from the U.S. labor market paints a complex, yet generally softer, picture. Last week's ADP Employment Change report indicated that private payrolls increased by 42,000 in October, surpassing the 25,000 forecast and offsetting September's 29,000 decline. However, the Challenger Job Cuts report presented a darker scenario, revealing that U.S. employers announced 153,074 job cuts in October—the highest monthly total since 2003. This was slightly mitigated by data showing the U.S. shed an average of 11,250 private-sector jobs in the four weeks ending October 25th, a slight improvement from the 14,250 loss recorded in the prior month.

The EUR/USD pair has recently undergone a sharp, aggressive ascent, driving the price toward the upper boundary of its established bearish channel. This rapid movement has pushed the Relative Strength Index (RSI) to the 75 level, indicating the pair has entered a state of being clearly overbought. Upon touching this channel resistance, the price has shown an immediate bearish reaction, suggesting that a significant downward correction from this level is highly probable. Furthermore, a crucial element for a potential reversal is the presence of a bearish divergence on the RSI; the recent price peak is associated with a much higher RSI reading compared to previous price highs, signaling that buying momentum is overextended and sellers may soon regain control.

Turning to key moving averages (MAs) on the 4-hour chart, the 100-period MA is positioned at 1.1577 and the 200-period MA at 1.1618. Should the price quickly fall back and breach the 200-period MA, it would serve as strong confirmation of an accelerated bearish trend. Conversely, a definitive and powerful break above the bearish channel trendline would invalidate the current bearish setup, potentially opening the door for a new sustained upward impulse.

Trading direction: Sell

Entry price: 1.1630

Target price: 1.1518

Stop loss: 1.1710

Validity: Nov 25, 2025 15:00:00