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London, United Kingdom, Nov 11, 2025, Gold is once again pushing higher, moving close to the $3,700 mark. What was once seen as a distant level is now within reach. Investors are watching closely as the U.S. Federal Reserve prepares to release its policy update. According to Aleksey Novikov, commodities and crypto expert at Inverest, the rise is not only about price. Instead, it signals a broader shift driven by weaker currencies, rate cut hopes, and rising geopolitical risks.
What happens when the Fed cuts rates? History shows gold often climbs. Investors now expect a 25-basis-point cut this week. For many, this move marks more than just a policy adjustment. It may signal the start of a new easing cycle.
Lower rates increase the appeal of non-yielding assets like gold. They also weaken the U.S. Dollar, which has already slipped to its lowest point since late July. That decline makes gold cheaper for foreign buyers. As a result, demand rises, and the rally strengthens.
Dollar Weakness Driving the Rally
The U.S. Dollar has been under pressure for weeks. Each decline adds new energy to gold’s momentum. The inverse link between the two assets feels stronger than ever. A weaker dollar draws more global buyers into the market, pushing gold even higher.
Could this continue? As long as the dollar remains weak, gold is likely to hold its upward momentum.
Geopolitical Tensions Add Fuel
Monetary policy is only part of the story. Tensions abroad are amplifying gold’s safe-haven role. Russia escalated its campaign in Zaporizhzhia after Ukrainian strikes on oil infrastructure. The conflict, already a key driver of energy volatility, now feeds into metals as well.
In the Middle East, tensions are rising too. An emergency summit of Arab and Islamic leaders condemned Israel’s recent strike in Doha. Calls for coordinated action followed, putting markets on edge once more. For investors, such developments highlight one reality: uncertainty has a price, and it often shows up in stronger gold demand.
The Fed may dominate attention this week, but other central banks are also in play. The Bank of Canada, the Bank of England, and the Bank of Japan will release their decisions as well. None are expected to shock markets, yet guidance still matters. Even a single phrase about future direction can shift currencies and commodities.
Still, Washington remains the key focus. The Fed’s projections and Jerome Powell’s remarks will guide markets. Will Powell confirm deeper cuts? Or will he hold back, signaling caution? These answers could determine if gold breaks past $3,700 or takes a pause.
Labor Data Shaping Expectations
The labor market has added to the dovish outlook. The latest Nonfarm Payrolls showed weaker hiring than expected. That result quickly shifted sentiment. Investors now expect not just this week’s cut but additional easing later in the year.
A softer jobs market means softer growth, and for the Fed, that means pressure to act. Investors responded immediately. Yields slipped, the dollar dropped, and gold surged.
Politics are never far from monetary policy. The Senate recently confirmed Stephen Miran, a Trump ally, to the Fed’s Board of Governors. At the same time, a federal appeals court blocked Trump from removing Governor Lisa Cook.
These changes may not affect the immediate decision, but they shape market perception. When politics and policy overlap, investors take note. For now, the signal is one of transition and uncertainty.
So, where does gold go from here? Will Powell confirm an easing cycle, sending prices beyond $3,700? Or will he move cautiously, leaving traders waiting for clarity?
By midweek, answers will emerge. Until then, the narrative is driven by speculation, and gold continues to be the preferred asset for people taking precautions against future events
Gold’s move toward $3,700 is not happening in isolation. It reflects weaker currencies, shifting policies, and global unrest. As Aleksey Novikov of Inverest points out, gold continues to stand out as the asset investors rely on when certainty is in short supply.
The Fed’s decision may shape the next leg of the rally. Yet the larger forces at play suggest one thing clearly: gold’s role as a hedge and safe haven is not fading.
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