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Dec 11, 2025
How did the 25 bps cut move gold and currencies?
The new policy path and its impact on risk appetite
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Global financial markets reacted noticeably today, December 11, 2025, following the Federal Reserve’s decision to cut interest rates by 25 basis points, marking the official start of a gradual easing cycle aimed at supporting economic growth and reducing financial pressures. |
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The rate cut pushed the U.S. dollar lower against most major currencies, while improving risk appetite across the markets. Gold also benefited significantly from the decline in real yields, rising toward new levels as investors increased their demand for safe-haven assets.
Meanwhile, U.S. indices such as the Nasdaq and Dow Jones posted moderate gains, supported by expectations that the Fed will continue easing throughout the first half of 2026. Market movements over the coming days will depend largely on the upcoming inflation and labor data, which will determine how quickly the Fed can continue lowering rates.
Technical Analysis – Gold (XAUUSD)
Gold is trading near the upper boundary of its short-term bullish structure, supported by broad dollar weakness following the rate cut. Prices remain firmly above the key support zone at 4180, preserving the positive momentum.
A break above 4230 would strengthen the bullish outlook toward 4248, then 4265.
A break below 4180 could trigger a corrective move targeting 4152.
- Overall Trend: Bullish
- Support: 4180 – 4152
- Resistance: 4230 – 4248 – 4265
Outlook: The bullish bias remains intact as long as gold holds above 4180, with further upside likely if the dollar continues to weaken post-decision.