**Gold Prices Stable** Gold prices are stable, ranging from $4,200 to $4,250, as we await a possible rate cut from the Federal Reserve next week. Currently, XAU/USD is trading at $4,216 after hitting a high of $4,259 earlier in the week. The Core PCE Price Index, the Fed’s key inflation measure, is mostly unchanged at around 3%. This, along with softer job data and prior statements from the Fed, suggests a potential rate cut is coming. A Reuters poll indicates that economists are largely expecting a rate cut in December, which might boost Gold prices. The CME’s FedWatch tool shows an 87.2% chance of a rate cut next week. The US Dollar Index remains steady, and the 10-year Treasury yield has increased to 4.141%. In September, the Core PCE, excluding food and energy, rose by 0.2%, leading to a yearly core PCE of 2.8%. In technical terms, Gold might stay in the $4,200-$4,250 range ahead of the Fed’s meeting. If it breaks out, prices could rise to $4,300. Conversely, a drop below $4,200 might find support from various moving averages. Central banks hold significant Gold reserves, and factors like geopolitical issues can influence prices. Since Gold is priced in dollars, changes in currency value also affect its price. **Federal Reserve Meeting Anticipation** Today, December 6th, 2025, Gold remains above the $4,200 level as we anticipate the important Federal Reserve meeting next week. With an 87.2% chance of a rate cut priced in, the momentum appears to be upward. This strong expectation provides a solid support level for current Gold prices, keeping significant sell-offs at bay. The Fed has room for this decision as inflation has been declining for months. Core PCE has dropped from 3.5% in spring 2025 to 2.8% now. This trend, along with a recent Non-Farm Payrolls report showing only 95,000 job gains, indicates a slowing economy that might allow for looser monetary policy. For derivative traders, this suggests preparing for a potential breakout with call options or bull call spreads. The options market is leaning bullish, with January 2026 call options at the $4,300 strike trading at a notable premium. A dovish signal from the Fed could push prices toward the all-time high of $4,381. However, we must remain wary of a “buy the rumor, sell the news” scenario, as the rate cut is widely anticipated. We recall the sharp $150 drop in summer 2024 when a expected cut did not materialize, so a hawkish surprise could be tough. Hedging long positions with puts below the $4,124 support level might be a wise choice. Support for Gold remains strong due to ongoing central bank purchases, a trend we have seen since major buying began in 2022. The latest World Gold Council data for Q3 2025 confirmed an additional 250 tonnes added to global official reserves. This ongoing demand provides a strong foundation for Gold’s long-term future. Technically, the price is tightly coiling in the $4,200-$4,250 range, building energy for its next movement. A clear break above daily highs of $4,259 would trigger a rally, while a surprising drop below $4,200 could target the 50-day moving average near $4,059. Create your live VT Markets account and start trading now.

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