Gold Rises to $4,430 as US Economic Data Shifts Fed Rate Hike Expectations
The price of gold has reached $4,430 on Tuesday as weaker US economic data led to reduced expectations for another Federal Reserve rate increase and put pressure on the dollar. The XAU/USD currency pair is now at a critical technical resistance area, where breaking through could strengthen its medium-term outlook.
Spot gold was up 0.2% at $4,424.28 an ounce as of 1:30 am GMT on August 18, extending gains for the third session in a row, while December US gold futures rose to $4,480.90. Recent labor, inflation, and consumer-spending data suggest softer economic conditions, which has shifted market expectations towards the Fed holding rates steady in September.
Gold is now challenging the descending resistance line that has capped rebounds since the early 2026 peak, according to Rashad Hajiyev's chart. A successful breakout could establish a stronger foundation for the coming months, but it needs to clear the resistance intersection and remain above it before the structure shifts convincingly in favor of buyers.
UBS forecasted that gold will reach $5,000 an ounce in the first half of 2027 and noted that near-term risks remain. For now, the gold price prediction hinges on the $4,440-$4,450 resistance area, where a confirmed breakout would strengthen the case for continued upside.