Gold Price Holds Above $3,400 as Safe-Haven Demand Eases and Fed Meeting Looms

Gold Pulls Back, But Downside Limited Above $3,400

The gold price (XAU/USD) is experiencing mild intraday losses on Monday, stepping back from a nearly two-month high reached earlier in the day. A wave of optimism across global equity markets is denting the appeal of traditional safe-haven assets, including gold. Despite the pullback, the precious metal continues to hold above the $3,400 mark, indicating resilience amid broader uncertainty.

Geopolitical and Macro Factors Keep Bulls in Play

Geopolitical tensions in the Middle East, particularly the ongoing Iran-Israel conflict, remain a strong underpinning factor for bullion. While risk appetite seems to be returning across equities, traders remain wary of flare-ups in global conflict zones, which can quickly swing sentiment back to safety.

At the same time, the US Dollar is hovering near a three-week low, pressured by growing consensus that the Federal Reserve may initiate rate cuts later in 2025. This macro environment favors non-yielding assets like gold, offering a fundamental cushion for XAU/USD despite technical profit-taking.

Traders Eye FOMC Decision for Forward Guidance

Markets are now focused on the upcoming FOMC policy meeting, set to begin Tuesday. The central bank’s tone and economic projections will be critical in shaping the near-term trajectory of gold and broader market sentiment. Until then, volatility may remain capped, as investors avoid aggressive positioning.

Related Links (Internal for Tredu.com)

• US Dollar Index DXY Outlook Ahead of FOMC
• WTI Oil Price and Middle East Conflict: What’s Next?
• Gold Technical Analysis: Resistance and Support Levels

Technical Levels to Watch

• Support: $3,390 | $3,360
• Resistance: $3,430 | $3,470
• Trend Bias: Moderately Bullish

The overall structure suggests that gold’s bullish trend remains intact as long as price action stays above $3,390. A dovish signal from the Fed could act as a fresh catalyst for upside momentum.