Gold Steadies at $3,660 After Fed Cut — Is XAU/USD Ready to Bounce?

Gold is steady around $3,660 in Asian trade as investors digest the Fed’s 25-basis-point rate cut—the first since December.

Written by: Arslan Butt • Friday, September 19, 2025 • 1 min read

• Last updated: Friday, September 19, 2025

Quick overview

Gold is steady around $3,660 as investors react to the Fed's recent 25-basis-point rate cut.
Market participants are awaiting US jobless claims and inflation data to gauge future Fed actions.
Gold is consolidating above a key trendline, with support at $3,655 and resistance at $3,673.
Traders are advised to consider long positions as long as the trendline holds, with defined risk parameters.

Gold is steady around $3,660 in Asian trade as investors digest the Fed’s 25-basis-point rate cut—the first since December. The move puts the fed funds rate in a 4.00%–4.25% range but policymakers indicated two more cuts possible before year-end.

The cautious tone capped the upside for gold and markets are waiting for more clarity from US data. According to Reuters, traders are now looking at jobless claims and inflation prints to see if the Fed will continue to ease.

Gold (XAU/USD) Levels to Watch

On the 4-hour chart, gold is consolidating above the ascending trendline from early September, forming a higher-lows pattern. The 50-SMA at $3,655 is support, while rejection wicks at $3,637 show buyers are defending the trend.

XAU/USD

The RSI is near 50, flattening after coming down from overbought, which is indecision not reversal. Candlestick action is showing hesitation, with a spinning top pattern indicating consolidation before the next move.

Support: $3,637, $3,612, $3,595
Resistance: $3,673, $3,698, $3,722

Gold (XAU/USD) Trade Setup and View

GOLD Price Chart - Source: Tradingview — GOLD Price Chart – Source: Tradingview

The immediate hurdle for gold is $3,673 where multiple tests have stalled rallies. A close above this level could trigger momentum to $3,698 and $3,722. Below $3,637 and we could see $3,612 where the trendline and horizontal support meet.

For traders, the setup is long biased as long as the trendline holds. An entry at $3,640 with stop below $3,612 offers defined risk, while targets stretch to $3,698 and above.

Despite macro caution, gold’s structure, higher lows and support is constructive in the short-term.

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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.