Gold Moves Cautiously Ahead of Tomorrow's Fed Interest Rate Decision
Gold prices moved steadily, tending to strengthen in trading on Wednesday (December 10th) ahead of the Federal Reserve's interest rate policy announcement, scheduled for release tomorrow evening US time. Market participants are holding their breath, waiting to see whether the central bank will actually cut interest rates by 25 basis points or instead signal a more cautious outlook for future monetary easing. Global investors are increasingly sensitive to the Fed's language, particularly given the potential for a "hawkish cut" — a rate cut accompanied by a warning that inflation is still not fully under control.
Pressure on the weakening dollar during the Asian session helped support gold prices, but movement remained limited as the market maintained its position ahead of the official decision and the Fed Chair's press conference. Market participants are also closely monitoring the volatile dynamics of US government bond yields, reflecting uncertainty over the direction of monetary policy. Trading volume in gold futures contracts has increased, indicating that market participants are preparing for sharp volatility during the FOMC announcement.
Technically, gold is still trading in a short-term bullish zone, with the nearest resistance at US$4,220–4,230 per troy ounce, a level that will determine whether the rally can extend to the psychological zone of US$4,250–4,300. Meanwhile, the nearest support is at US$4,150–4,100, which serves as the first line of defense if the market reacts negatively to the Fed's policy tone.
Analysts expect gold's movement to remain limited until the Fed's policy signal is fully clear. If the Fed cuts interest rates while displaying a dovish stance, gold has the potential to continue its rally to another record high. However, if the tone is hawkish or the Fed signals a slower rate of decline ahead, gold could face corrective pressure later this week. The market is now poised to enter one of the most volatile sessions for precious metals this year.
Source : Newsmaker.id
