Gold Price Struggles for Firm Intraday Direction, Stuck in a Range Ahead of Fed Decision
Gold price (XAU/USD) struggles to gain any meaningful traction on Wednesday and consolidates in a range, around the $2,570 area heading into the European session. Traders now seem reluctant and opt to wait for the outcome of the highly-anticipated two-day Federal Open Market Committee (FOMC) meeting before positioning for the next leg of a directional move. Heading into the key central bank event risk, rising bets for a more aggressive policy easing by the Federal Reserve (Fed) keep a lid on the US Dollar (USD) recovery from its lowest level since July 2023 touched on Tuesday. This, in turn, is seen acting as a tailwind for the non-yielding yellow metal.
Apart from this, the risk of a further escalation of geopolitical tensions in the Middle East, along with the US political uncertainty ahead of the November presidential election, might continue to lend support to the Gold price. Investors this week will further take cues from the Bank of England (BoE) decision on Thursday and the Bank of Japan (BoJ) policy update on Friday. This makes it prudent to wait for strong follow-through selling before confirming that the XAU/USD has topped out in the near term and positioning for an extension of the overnight pullback from the vicinity of the all-time peak, around the $2,589-2,590 area touched on the first day of the current week.
Source : FXStreet
