Gold Market Analysis – October 30, 2025

When words disappear, gold becomes the dialogue.

Gold prices today record around $3,980.29 per ounce, following a volatile session after the U.S. Federal Reserve meeting, during which interest rates were cut by 25 basis points, as widely expected.

This decision marked a turning point in market sentiment, signaling the start of a gradual monetary easing cycle aimed at supporting the U.S. economy amid slowing growth and weakening data.

As a result, the U.S. dollar came under mild pressure, while gold received partial support from lower real yields. However, gains remained limited due to profit-taking and a rise in risk appetite across equity markets.

Global News and Indicators

According to reports from Reuters and Bloomberg, investors reacted to the Fed’s rate cut with cautious optimism. U.S. stock markets initially rose before stabilizing, while gold briefly approached the $4,000 level before pulling back again on the back of relative dollar strength.

Meanwhile, ongoing geopolitical tensions in several regions continue to support defensive demand for gold, according to the World Gold Council, which noted that gold’s movement within the $3,950–$4,000 range reflects a delicate balance between supportive monetary policy and moderating safe-haven demand.

Monetary Policy Analysis and the Impact of the Rate Cut

The Fed’s decision to cut rates reinforced the view that the upcoming phase will feature greater monetary flexibility.

• A rate cut means lower returns on dollar-denominated assets, enhancing gold’s attractiveness as an alternative investment.
• Conversely, Jerome Powell’s statement that “the cut does not mark the beginning of a rapid easing cycle” limited gold’s immediate upside momentum.

Thus, the market is currently balancing two opposing factors:

1. The supportive effect of lower rates on gold prices over the medium term.
2. The pressure from sustained high real yields and a strong dollar in the short term.

Updated Technical Analysis

Based on the latest technical analysis outlooks:

• Key Support: $3,950 – $3,930 per ounce
• Immediate Resistance: $4,050 – $4,100, followed by $4,200
• Short-term Trend: Cautiously bullish after successfully retesting support post-Fed meeting
• Medium-term Trend: Remains positive as long as prices hold above $3,930

Future Outlook

Considering the recent Fed meeting and its latest decision, the scenarios can be summarized as follows:

• If the dollar continues to weaken in the coming weeks, gold may break above $4,100 and possibly target $4,250.
• However, if expectations of further cuts fade or strong economic data emerge, gold could retest $3,950 once again.
• Over the medium term, ongoing central bank gold purchases as a hedge against the dollar are expected to sustain the overall bullish bias.

Conclusion

The Federal Reserve’s 25-basis-point rate cut represents a gradual shift in U.S. monetary policy, providing fundamental medium-term support for gold.

Nevertheless, the strong dollar and relatively high yields continue to pose short-term resistance to rapid gains.

At the current price of around $3,980 per ounce, gold reflects a fine balance between caution and support, with limited volatility likely to persist until the release of the upcoming employment and inflation data.