Gold Price Flat Below $3,400 Ahead of Fed Rate Decision

Gold Price Flat Below $3,400 Ahead of Fed Rate Decision

Gold (XAU/USD) trades in a tight range for the second straight day, hovering just below the $3,400 level during Wednesday’s Asian session. Market participants remain on the sidelines ahead of the pivotal Federal Reserve (Fed) interest rate verdict later today, which is expected to heavily influence the US Dollar and gold’s near-term outlook.

Traders Await Fed Rate Clarity

The Federal Open Market Committee (FOMC) concludes its two-day meeting today. With inflation showing signs of moderation, markets are betting on a September rate cut. This sentiment has weakened the US Dollar (USD) from its recent weekly highs, indirectly supporting the gold price.

Geopolitical Risks and Trade Tensions Provide a Safety Net

Beyond the Fed, rising geopolitical tensions in the Middle East and continued global trade uncertainties are keeping demand for safe-haven assets like gold steady. These factors may prevent deeper corrections in the precious metal’s price, though fresh bullish momentum may remain limited until clearer policy guidance is provided.

Technical Picture

Gold’s price action suggests consolidation following a retracement from a near two-month high. Until a decisive break above $3,400 or below $3,360 occurs, traders may prefer to stay cautious.

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