The gold market is sending a strong signal this week: despite concerns and market noise, physical bullion remains resilient. On October 29, 2025, the Federal Reserve pushed through a 25-basis-point rate cut, moving its target range to 3.75 %–4.00 %.
What makes this cut unusual is the split vote and the cautious tone of the statement. Analysts are noting that while the policy move supports gold (by reducing real yields and tamping down the dollar), it stops short of signalling aggressive easing to come.
Gold (XAU/USD) briefly climbed back into the $4,000 per ounce range, underscoring that the market is still willing to reward safe-haven bets.
Key Takeaways for Investors:
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With the Fed choosing caution, gold’s upside may be driven more by expectations than by immediate policy moves.
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If the Fed signals future cuts (or cites downside risk), that could trigger another leg higher for gold. Conversely, a hawkish or neutral stance may dampen momentum.
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Physical demand (IRAs, bullion purchases) remains critical: while futures and ETFs can flip quickly, real assets take time to accumulate, which means the supply-demand dynamic is still supportive.
Looking Ahead:
Keep an eye on Fed Chair Jerome Powell’s press conference and upcoming labour/inflation data. The market is watching for more than just rate cuts—it is watching the path.
For investors in precious metals, this is a potential pre-holiday window where positioning now could offer asymmetric upside.
