Normally, higher interest rates support the US dollar and Treasury yields, which puts pressure on gold. But multiple factors support safe-haven demand for gold. Which factors will prevail ahead of the FOMC’s upcoming rate decision on October 28?
Gold between opposing forces
They keep purchasing gold as a safe-haven asset and diversification tool.
Gold is a traditional protection against inflation, and the oil crisis is fueling persistent inflation concerns.
Escalating conflicts and growing uncertainty push investors toward gold.
A weaker dollar or falling Treasury yields could support XAUUSD even if interest rates are high.
If the Fed sounds less hawkish than expected, gold could continue to rise even without an immediate rate cut.
What should traders watch
•The Fed’s guidance
•The US dollar and Treasury yields
•Inflation and oil prices
These three factors combined can suggest whether pressure from high interest rates outweighs safe-haven demand.
•Most Trusted Broker — 2026
These awards confirm our commitment to building a rewarding trading environment and helping you uncover your potential. Thank you for choosing to trade with an award-winning broker!
Choose MetaTrader 5 with Top Forex Brokers?
•Blazing-fast execution & enhanced stability
•38 built-in technical indicators & 21 timeframes for precision trading
•Optimized for all devices—desktop, mobile & web
•Trade a wide range of assets: Stocks, Commodities, Forex & more!
https://www.topforexbrokerscomparison.com
*Tips and analytics do not constitute a call to trade, trading advice or recommendation and are for information only.
