Tether Gold Price Prediction – XAUt Likely to Retest $3500 as Macro Uncertainty Rises

Highlights:

• Tether Gold is in a solid bullish channel, with every dip being bid up
• Rising demand points to a demand for safety as macro uncertainty rises
• First target if Gold gains upside momentum would be $3500 in the short term

Tether Gold (XAUt) is little changed today, reflecting a relatively slow day for Gold. Tether Gold was trading at $3362.27 when going to press, down by 0.45%. However, XAUt trading volumes are down in the day, dropping by 6.82% to $17.83 million. This can mean that investors holding Tether Gold are not liquidating their holdings at the current price.

Such is a sign of confidence that the price will go up at some point in the future. This underlying bullish sentiment in XAUt and Gold as an asset is not without basis. The prevailing market environment favors its price appreciation in the long term. 

Fed Actions Point to End of Tightening Cycle – Bullish for Gold

The US Federal Reserve recently announced holding rates steady above 4%. This is a bullish signal for Tether Gold for several reasons. First, the move by the Fed to hold rates two times in a row is a hint that the monetary tightening cycle is coming to an end. This is a bullish signal for Gold, as it does not have yield. As such, it does well when investors expect rates to start coming down. In essence, now that the Fed is expected to cut rates at least twice in the remainder of the year, Gold could rally as investors front-run such a possibility.

REUTERS JUST SAID FED WILL CUT INTEREST RATES NEXT QUARTER

IT’S COMING!!! pic.twitter.com/oAyk342MZF

— Vivek (@Vivek4real_) June 10, 2025

Dollar Could Weaken Amid Possible Rate Cut, Boosting Gold Prices

There is also the fact that the expectations of a rate cut mean demand for the dollar will start to drop. That’s because investments in US bonds are expected to start recording weaker yields. The result is that money starts to flow into hard assets that protect against inflation and offer growth.

This scenario is exceptionally bullish for Gold because the Fed’s recent statements hint that inflation may not go down anytime soon. As such, Gold, with its long history of protecting value against inflation, could see its demand soar, and value go up in the foreseeable future.

The biggest takeaway from the most recent US inflation print was that tariffs are still not showing up in any significant way. If it carries on like this for a few more months, rate cuts are likely. But there’s another risk to those likely two cuts by year-end, and it’s naggingly… pic.twitter.com/o9xjcQb5Qz

— Tracy Shuchart (𝒞𝒽𝒾 ) (@chigrl) June 19, 2025

Tether Gold also stands to benefit from the cloud of uncertainty as to when the Fed will start cutting rates. Economic uncertainty driven by the trade war means demand for safe havens will remain high. Since gold is one of the top safe havens with a proven history, it could hit new highs in the short term before the markets find clarity. 

Escalating Crisis In the Middle East Makes Tether Gold A Safe Bet

The crisis in the Middle East also stands to benefit Gold, as war escalates. The latest threat to such an escalation is the possibility that the US could join the war in support of Israel. The result is that other powers could participate on the side of Iran, broadening the conflict’s scope and hurting the world economy. With the world economy already weakened by the trade war, this move could see investors flock more towards time-tested safe havens like Gold.

The U.S. should not join a war against Iran, and I will ask the Senate to stop such a reckless idea. Have we learned nothing from 20+ years of war in the Middle East?https://t.co/Ta3LFmgJU1

— Senator Tim Kaine (@SenTimKaine) June 16, 2025

Technical Analysis – XAUt Trading In a Bullish Channel

Gold is trading in a bullish channel on the weekly chart while forming higher lows. This indicates that every dip is being bid up quickly, an indicator of strengthening demand. Gold has recently dipped, but buyers are coming in around the $3350 price. If bulls sustain this momentum, XAUt could soon be trading above $3500.