Introduction to Gold Prices
Investors are keenly awaiting Federal Reserve Chair Jerome Powell’s speech for indications regarding the central bank’s policy direction. Gold prices stabilized on Tuesday following a record high, supported by expectations of further U.S. rate cuts and a weakened dollar.
Current Gold Rates
In Dubai, gold rates increased, with 24-carat gold rising by AED3.5 to AED451.75. Similarly, 22-carat gold saw a gain of AED3.5, reaching AED418.50. Furthermore, 21-carat gold experienced an uptick of AED3.00 to AED401.00. Additionally, 18-carat gold advanced by AED3.00 to AED344.00. Spot gold maintained its position at $3,744.68 per ounce, after achieving a record high of $3,759.02 earlier in the session. U.S. gold futures for December delivery increased by 0.1 percent to $3,779.40.
Impact of the U.S. Dollar Index
The U.S. dollar index continued its decline from the previous session, making gold priced in dollars less expensive for international buyers. Investors are keenly awaiting Powell’s speech, scheduled for 16:35 GMT, for indications regarding the central bank’s policy direction. The U.S. Personal Consumption Expenditures index, which is the Fed’s preferred measure of inflation, is expected to be released on Friday.
Federal Reserve Governor’s Perspective
New Federal Reserve Governor Stephen Miran remarked on Monday that the Fed is misinterpreting the tightness of its monetary policy and risks jeopardizing the job market without substantial rate cuts. This perspective was countered by three of his colleagues, who believe the central bank should adopt a cautious stance regarding inflation. According to the CME FedWatch tool, investors anticipate a 90 percent likelihood of a 25-basis-point rate cut in October and a 75 percent chance of an additional cut in December.
Performance of Other Precious Metals
Spot silver diminished by 0.5 percent to $43.84 per ounce, remaining close to a 14-year high. Platinum decreased by 0.2 percent to $1,413.80, while palladium slipped 0.5 percent to $1,173.18.
Gold’s Strong Performance Continues
Gold’s strong performance through September 2025 continues, with prices reaching fresh all-time highs amid persistent expectations of U.S. Federal Reserve rate cuts. Gold surged nearly 2 percent to record levels on September 22, buoyed by growing anticipation that the Fed will ease monetary policy to support a weakening labor market and alleviate inflationary pressures. This trend aligns with significant safe-haven demand driven by geopolitical uncertainties, including ongoing conflict in Eastern Europe.
Technical Analysis and Forecast
Technically, gold’s short-term price trajectory remains bullish, having sustained above key support levels around $3,600, with analysts noting momentum toward the next resistance around $3,725 and forecasts projecting prices near $3,898 within a year. This bullish outlook is tempered by cautions from some Fed officials who stressed the need for measured policy easing given persistent inflation.
Conclusion
In conclusion, gold prices are expected to continue their strong performance, driven by expectations of further U.S. rate cuts and a weakened dollar. The combination of easing rates, geopolitical risks, and dollar weakness creates a supportive environment for gold’s robust performance and potential further gains above the psychologically significant $4,000 mark later this year. As investors await Powell’s speech and the upcoming core personal consumption expenditure (PCE) inflation data, the market will be closely watching for further policy clues that may impact gold prices.
