Gold: XAU/USD finds support at $3,630 as US Dollar recovery stalls

LONDON (September 19) Gold found buyers at the $3,630 level to bounce up on Friday following a two-day reversal from all-time highs at $3,700 on Wednesday. The precious metal attracted some bids with the US Dollar recovery losing steam, and returned to levels past $3,650.

Better-than-expected US jobless claims and a strong rebound of the Philly Fed Manufacturing Survey provided additional support for the US Dollar’s recovery. That said,  the scope for a sharp recovery is likely to be limited with the market nearly fully pricing another Fed rate cut in October and high chances of further monetary easing in December.

Weak US employment data has boosted hopes of Fed cuts over the following months. Futures markets are broadly pricing a quarter point in each monetary policy meeting this year and some more in the first months of 2026, a view that is highly unlikely to be confirmed by Fed Chair Jerome Powell.

FXStreet