Gold Price Holds Below $3,400 as Markets Await Fed Stimulus Signal

Gold Price Flat Below $3,400 as Fed Decision Looms

The Gold price (XAU/USD) continues its sideways movement below the key $3,400 level in the Asian session on Wednesday. Traders remain cautious, awaiting the outcome of the Federal Reserve’s FOMC meeting later today, which is expected to offer vital clues on the future of US interest rates.

Fed Expectations Keep Investors on Hold

Despite Tuesday's gains in the US Dollar (USD), the greenback softened on Wednesday amid rising speculation that the Fed may begin cutting rates in September. This has limited downside movement for gold, which traditionally benefits when real yields fall.

The absence of fresh positioning suggests that traders prefer to stay on the sidelines until the FOMC statement and Chair Jerome Powell’s press conference offer more policy clarity.

Geopolitical and Trade Risks Underpin Gold Support

Heightened geopolitical tensions in the Middle East and ongoing trade-related uncertainties are also propping up gold’s appeal as a safe-haven asset. This combination of macroeconomic and political risk is helping to cushion gold from deeper corrections after its recent surge to a two-month high.

Until a decisive shift in Fed tone or economic data emerges, gold’s path is likely to remain range-bound near current levels.

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