Gold Holds Breath
Gold prices (XAU/USD) took a breather on Wednesday, retreating slightly from a new record near $3,703 reached Tuesday. Ahead of the Fed's interest rate decision at 18:00 GMT, market participants took profits and repositioned. Gold briefly touched an intraday low of around $3,660 before stabilizing; at the time of writing, it was trading around $3,682, down 0.20% daily.
A steady US dollar has helped curb gold's rally, while persistently low US bond yields have maintained the precious metal's appeal but also limited momentum until the Fed's policy direction becomes clearer. Markets are widely expecting a 25 bps rate cut to 4.00%–4.25%, the first cut in 2025.
The next focus is on the "dot plot" and the latest economic projections, as well as Fed Chairman Jerome Powell's press conference at 18:30 GMT. The tone and details of forward guidance (pace and scope of easing) will determine the near-term direction of the dollar, yields, and gold.
Despite the pullback, gold's uptrend remains intact. The prospect of US monetary easing, geopolitical tensions, and demand for safe-haven assets remain key drivers. Scenario: A more dovish Fed could trigger a new peak test; conversely, a cautious message could deepen the correction below the $3,700 area. (ayu)
Key Points:
Tuesday's record: $3,703; Wednesday's intraday low: $3,660; currently $3,682
The Fed is expected to cut 25 bps to 4.00%–4.25% (18:00 GMT)
Dot plot & Powell's press conference (18:30 GMT) key to the next direction
Dollar steady, low yields support; gold's uptrend remains intact
Source: Newsmaker.id
