Home
Gold prices dip as investors lock in gains ahead of Fed decision

Gold prices dip as investors lock in gains ahead of Fed decision

Web Desk Reuters
Sep 15, 2025

WASHINGTON: Gold prices edged lower on Monday as investors booked profits after last week’s record-breaking rally, while a slight uptick in the dollar also weighed on the metal. However, losses remained modest as markets turned their attention to a closely watched US Federal Reserve meeting later this week, where a rate cut is widely expected following signs of weakness in the labour market.

Spot gold slipped 0.2 percent to $3,633.86 per ounce by 0152 GMT, after gaining about 1.6 percent last week and hitting an all-time high of $3,673.95 on Tuesday. US gold futures for December delivery dropped 0.4 percent to $3,671.30.

Investors lock in gains

Analysts said gold’s rally had left it looking technically overbought, prompting some traders to take profits at the start of the week.

“Gold was looking overbought on a technical basis, which prompted some profit-taking to start the new week. Some resilience from the dollar is another factor working against gold,” said Tim Waterer, Chief Market Analyst at KCM Trade.

The dollar index rose 0.1 percent, making the greenback-priced metal more expensive for buyers using other currencies. Gold’s relative strength index (RSI), a momentum gauge, is currently at 75. Readings above 70 are generally seen as a sign that an asset may be overpriced or due for a pullback.

Waterer noted that gold could enter a phase of consolidation and said any dip towards the $3,500 support level was likely to draw buying interest as long as the Fed keeps signalling a dovish stance.

All eyes on Fed

Market focus is now squarely on the Fed’s two-day policy meeting starting Tuesday, where a quarter-point rate cut is expected despite slightly hotter-than-forecast inflation data last week.

The meeting comes at a sensitive time for the central bank, which is grappling with a legal challenge over its leadership and the ongoing effort to confirm US President Donald Trump’s nominee to the Board of Governors.

Analysts at Goldman Sachs said they still see gold reaching $4,000 per ounce by mid-2026, though they warned that heavy speculative positioning could trigger short-term pullbacks as traders adjust their bets. Data from the week ended September 9 showed speculators trimming their net long positions in gold by 2,445 contracts to 166,417.