Gold rises near $4,200 per ounce... driven by Fed easing expectations

Gold spot (XAU/USD) prices are approaching the $4,200 per ounce level as buying interest emerges during the Asian session. Recently, statements from Federal Reserve (Fed·Fed) officials have been interpreted as leaning towards monetary easing, rekindling market expectations of a potential rate cut in December, which has become a key support level for gold prices.

Geopolitical Tensions as a ‘Defense Wall’ for Gold

Uncertainty surrounding the Russia-Ukraine conflict continues to support the downside of gold prices. As President Putin maintains a firm stance excluding territorial concessions, prospects for negotiations darken. These geopolitical tensions stimulate risk-averse sentiment among investors and underpin demand for gold as a safe-haven asset.

Fed Rate Cut Reemerges… Dollar Weakness Still Persists

Of particular note is the renewed possibility of a 0.25 percentage point rate cut at the December FOMC meeting. The market’s expectations are also heightened by the mention of potential Fed chair candidates in the next Trump administration who favor low interest rates. These factors are limiting the decline in gold prices even as the US dollar rebounds.

$4,200 per ounce as a Critical Threshold… Technical Developments to Watch

From a technical perspective, the current situation is positive. Gold prices have recently broken through the resistance level of $4,175 per ounce, reaffirming an upward trend.

Bullish Scenario: If prices settle at $4,200, the short-term high of $4,245 this month could become the next target. Breaking through this level may further strengthen the rally.

Bearish Scenario: If a correction occurs, the $4,170–$4,175 range is likely to act as a strong first support. If this line is broken, prices could fall to $4,115, and in an extreme case, the correction could extend to the 200-day exponential moving average (EMA) at around $4,040 per ounce.