Gold’s rally accelerated this week, surging past 3,500 level for the first time in history. The move reflects growing conviction that the Fed’s rate-cut cycle will extend deep into 2026, eventually bringing policy back to neutral at around 3.00%. With global uncertainty mounting and political interference in Washington intensifying, the precious metal continues to draw strong demand as a hedge.
U.S. President Donald Trump has amplified calls for more aggressive easing, declaring in a social media post that “Prices are WAY DOWN in the USA, with virtually no inflation.” Treasury Secretary Scott Bessent added to the pressure, accusing the Fed of “a lot of mistakes” and backing Trump’s effort to remove Governor Lisa Cook. Bessent also urged swift Senate confirmation of White House economic adviser Stephen Miran to temporarily replace Adriana Kugler, who resigned earlier this month, for the upcoming FOMC meeting this month.
Investors increasingly view Gold as a shield against political intrusion into monetary policy, particularly as institutional frictions grow louder in the run-up to key policy meetings. The combination of dovish expectations and political pressure has fueled the current strong rally.
Technically, while there may be some jitters for Gold at the current 3,500 psychological resistance, near term outlook will stay bullish as long as 3,408.21 resistance turned support holds.
Current rally should target 161.8% projection of 3,267.90 to 3,408.21 from 3,311.30 at 3,538.32 in the near term. Firm break there will pave the way to 261.8% projection at 261.8% projection at 3,678.63 next.
