Gold consolidates below fresh record highs as traders brace for Fed interest rate decision
Gold (XAU/USD) pushes deeper into uncharted territory on Wednesday, extending its gains for eight consecutive days as safe-haven demand and a softer US Dollar (USD) fuel the ongoing rally. At the time of writing, XAU/USD is trading around $5,280, easing slightly after touching a fresh all-time high near $5,311 earlier in the European session.
Traders appear reluctant to chase prices aggressively higher ahead of the Federal Reserve’s (Fed) interest rate decision due later at 19:00 GMT. While no change in rates is expected, markets will closely scrutinize Chair Jerome Powell’s tone and forward guidance for clues on the monetary policy path.
Any hint of a gradual easing bias would likely reinforce the broader bullish structure in Gold. By contrast, a more cautious or hawkish message could trigger near-term profit-taking, potentially offering the US Dollar (USD) some relief and slowing Bullion’s ascent.
Source: FXstreet.com