Gold/USD hovers at 6-week lows as Fed rate cut expectations diminish

Gold/USD is consolidating near 6-week lows around $1,965 as diminishing Federal Reserve rate cut expectations bolster dollar strength. Markets have significantly repriced rate cut probabilities for 2025, with futures now indicating only a 35% chance of easing by June, down from 65% last month. The shift follows robust US economic data, including stronger-than-expected Q3 GDP growth at 5.2% annualized. EUR/USD has slipped 0.2% to 1.0780 while USD/JPY advanced 0.4% to 150.20, reflecting broad dollar strength. Technical indicators suggest gold faces immediate resistance at $1,985 (50-day moving average), with support at the psychological $1,950 level. A sustained break below $1,950 could accelerate declines toward $1,920. Traders are closely monitoring upcoming US inflation data and Fed officials' speeches for further directional cues on monetary policy trajectory.