🟡 Gold Market Update: Bulls Pause as Fed Decision Approaches

Gold (XAU/USD) is showing mild gains to start the week, but traders remain cautious as everyone waits for the FOMC rate decision on Wednesday.

🔑 Key Highlights

▪︎Gold edges higher as expectations of another Fed rate cut keep the US Dollar near a monthly low.

▪︎Geopolitical tensions and risk-off sentiment continue to support the safe-haven asset.

▪︎Despite supportive fundamentals, bulls are holding back until the Fed reveals its updated economic outlook and Powell’s comments.

📊 What’s Moving the Market?

■US PCE inflation came in at 2.8% YoY — in line with estimates.

■Cooling labor market data boosts the argument for more Fed easing.

■Traders now price a ~90% chance of a rate cut this week, and more by April 2026.

■USD weakness continues, giving gold steady demand.

⚠️ Why Gold Isn’t Breaking Out Yet

》Even with strong fundamentals, XAU/USD is stuck in a tight one-week range. Markets want clarity on:

》Fed’s rate-cut trajectory

》Updated economic projections

》Powell’s tone at the press conference

📈 Technical Levels to Watch

Support: $4,190 (200-hour EMA). A break below could open a move toward $4,164–4,163 and potentially sub-$4,100.

Resistance: $4,250–4,260. A breakout can push gold toward $4,278 and possibly retest $4,300.

🧭 Market Mood

Gold bulls aren’t giving up — but they’re playing the waiting game.

A dovish Fed could ignite the next leg up.

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