đĄ 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.
đ Key Highlights
âŞď¸Gold edges higher as expectations of another Fed rate cut keep the US Dollar near a monthly low.
âŞď¸Geopolitical tensions and risk-off sentiment continue to support the safe-haven asset.
âŞď¸Despite supportive fundamentals, bulls are holding back until the Fed reveals its updated economic outlook and Powellâs comments.
đ Whatâs Moving the Market?
â US PCE inflation came in at 2.8% YoY â in line with estimates.
â Cooling labor market data boosts the argument for more Fed easing.
â Traders now price a ~90% chance of a rate cut this week, and more by April 2026.
â USD weakness continues, giving gold steady demand.
â ď¸ Why Gold Isnât Breaking Out Yet
ăEven with strong fundamentals, XAU/USD is stuck in a tight one-week range. Markets want clarity on:
ăFedâs rate-cut trajectory
ăUpdated economic projections
ăPowellâs tone at the press conference
đ Technical Levels to Watch
Support: $4,190 (200-hour EMA). A break below could open a move toward $4,164â4,163 and potentially sub-$4,100.
Resistance: $4,250â4,260. A breakout can push gold toward $4,278 and possibly retest $4,300.
đ§ Market Mood
Gold bulls arenât giving up â but theyâre playing the waiting game.
A dovish Fed could ignite the next leg up.
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