Gold prices have regained momentum, rising above their 20-day Exponential Moving Average (EMA) as dovish sentiment around the US Federal Reserve intensifies. The recent rally was fueled by investor bets that the Fed may start cutting interest rates sooner than previously expected, following weaker-than-anticipated US payroll data and fresh trade tensions. These developments have reinvigorated safe-haven demand for gold, pushing spot prices to their highest in over a week.

In early August, gold rose almost 2%, with spot rates reaching $3,350 per ounce and US futures trading above $3,400. This surge came after the US Labor Department reported slower job growth, giving investors increased confidence that lower interest rates are on the horizon. The Fed’s decision to leave rates unchanged has further propelled expectations for at least two rate cuts before year-end, likely beginning as early as September. Traditionally, gold shines in low-interest-rate environments, as the opportunity cost of holding non-yielding assets diminishes.

Forecasts for the coming weeks remain bullish. Algorithms and analyst models predict that gold could continue its ascent, with some projections suggesting the metal may approach the upper end of its recent trading range, between $3,200 and $3,500 per ounce. However, many analysts caution that the market could remain range-bound if no significant new catalysts emerge.

Overall, gold’s appeal as a hedge against economic uncertainty and currency devaluation is being amplified by global macroeconomic factors, including monetary policy shifts and geopolitical risks. Investors should monitor updates from the Federal Reserve and shifts in global trade policy, as these are likely to remain key drivers of gold price dynamics in the near term.