Europe Asia News

Several influential members of the U.S. Federal Reserve’s Monetary Policy Committee failed to convincingly argue for lowering borrowing costs, prompting investors to reduce expectations for another rate cut. According to analysts, this situation helps revive demand for the dollar at the start of the new week and becomes a key factor pressuring non-yielding gold.

However, concerns that economic momentum may weaken following the longest U.S. government shutdown ever keep the possibility of continued policy easing by the Fed alive, which limits the dollar’s strength. Analysts emphasize that this development, combined with declining risk appetite, supports gold as a safe haven and helps limit losses.

Investors closely monitoring analysts and market developments are acting cautiously and prefer to wait for Wednesday’s release of the Fed’s meeting minutes and Thursday’s U.S. non-farm payrolls report for October. Analysts believe that these two consecutive reports may influence the dollar and provide new momentum for commodities.

Market analysts note that on Friday, gold faced some resistance below the 20-period Simple Moving Average (SMA) on the four-hour chart, stating:

“However, the lack of follow-through in upward movement requires caution among bullish traders. Moreover, the negative oscillators on the chart suggest it would be wise to wait for sustained strength above the 4,100-dollar level before taking positions targeting the 4,140–4,145 resistance area. Momentum may extend further and allow gold to attempt another move above 4,200 dollars.”