Gold prices are steadily rising, with five weeks of gains pushing it close to $3,700. This upward trend is driven by traders buying during price dips, especially after meetings held by the Federal Reserve. The Federal Reserve’s decisions suggest that upcoming US economic data will affect what the market expects for interest rates. Key reports to watch this week include PMI data, initial jobless claims, and the PCE price index, which will be released on Friday.

Gold’s Movement

This week’s movement in gold will rely on how traders feel about the US dollar, as there are few indicators available. Even if there are some price corrections, supportive factors keep gold in a strong position. The main question is whether gold will pull back before the strong seasonal growth expected in December and January. Ongoing interest in buying at lower prices offers hope for gold’s positive trend. As gold nears the $3,700 mark after five weeks of gains, we can expect more upward movement. Any price dips are quickly being purchased, which suggests that buying call options or selling put spreads during pullbacks could be a smart approach. This allows us to benefit from rising prices while controlling our risk.

Market Focus

The market is focused on the belief that the Federal Reserve has finished raising rates, putting attention on the upcoming US data. The PCE price index, set to be released this Friday, is especially important since inflation plays a crucial role in Fed policy. The last core PCE figure for August 2025 was slightly above expectations at 2.9%. If we see another high number, it could lead to a temporary drop in gold prices. Other reports, like weekly jobless claims, will also shape how traders view the dollar. Last week, initial claims increased to 225,000, reinforcing the idea of a slowing job market and less likelihood of further Fed rate hikes. A weaker dollar continues to boost gold prices. Given the strong overall trend, the “buy on dips” strategy remains a good choice. A similar situation occurred in late 2023 when the market anticipated rate cuts, which led to a significant rally in gold beyond the $2,100 mark. What we’re seeing now seems like a continuation of that bullish trend. As a result, traders in derivatives might want to take advantage of any volatility driven by data this week to enter bullish positions. A brief correction after the PCE data could provide a good opportunity, especially as we move into the peak seasonal months for gold demand. Create your live VT Markets account and start trading now.

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