Gold Price Forecast: $3,400 Holds Strong as Fed Cut Bets Drive Bullish Outlook

Gold is above $3,400 and supported by both technical and macro. A softer dollar and rate cut expectations have helped gold...

Written by: Arslan Butt • Friday, August 29, 2025 • 1 min read

• Last updated: Friday, August 29, 2025

Quick overview

Gold is currently trading above $3,400, supported by a softer dollar and expectations of rate cuts.
Long-term investors benefit from sticky US inflation, uneven global growth, and increased central bank purchases of bullion.
Technical indicators suggest a bullish trend, with key support at $3,388 and potential resistance at $3,420.
Traders are advised to buy dips above $3,398, with the potential for gold to reach new highs above $3,440.

Gold is above $3,400 and supported by both technical and macro. A softer dollar and rate cut expectations have helped gold recover from the August low of $3,332. Analysts say this is gold’s role as a hedge against policy uncertainty and dollar weakness.

For long term investors the backdrop is good: US inflation is sticky, global growth is uneven and central banks are buying bullion. Against this backdrop gold’s monthly gain looks solid and gold is testing resistance at $3,420.

Gold Technical Setup Points to Breakout

On the 2 hour chart gold is tracing an ascending trendline, a series of higher lows, a bullish continuation. The 50-SMA at $3,388 is support and every rebound from this level confirms buyers are in control.

Momentum indicators back the trend. The RSI has cooled from overbought levels of 64 to 58, a healthy reset that keeps the trend intact. The MACD is positive and the recent bullish engulfing candles and the three white soldiers pattern add to the bullish case.

Key levels to watch:

Above $3,420 could go to $3,440 and $3,457.
Below $3,398 could go to $3,370 or $3,351.

Trade Setup for New Highs

For traders the setup is simple. Buying dips above $3,398 with stops below $3,370 is a good risk reward. If momentum holds the next breakout could take us above $3,440 and potentially to $3,500 in the weeks ahead.

With macro and technicals aligned gold’s path is higher. As long as support holds gold should continue to rally and test new highs in September.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.