Gold Price Forecast: XAU/USD consolidates ahead of Federal Reserve’s decision
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get all exclusive analysis, access our analysis and get Gold and signals alerts
Elevate your trading Journey.
UPGRADEXAU/USD Current price: $3,387.65
- US-China initial trade talks set to begin next Wednesday, according to Sec Bessent.
- The Federal Reserve is widely anticipated to keep interest rates on hold.
- XAU/USD consolidates below $3,400 as market players await the Fed’s decision.
Gold consolidates just ahead of the $3,400 mark on Wednesday, unchanged on a daily basis as investors await the United States (US) Federal Reserve (Fed) monetary policy decision. The central bank is widely anticipated to keep interest rates on hold, as uncertainty about President Donald Trump’s tariffs weighs on US policymakers.
The US Dollar (USD) has been confined to familiar levels throughout the day, as investors assess different news. On the one hand, headlines indicated that the US and Chinese trade teams will meet in the upcoming days to de-escalate tensions. US Treasury Secretary Scott Bessent anticipated initial talks would begin on Saturday, clarifying that those would not be advanced discussions.
On the other hand, stocks trade with a sour tone amid big losses in the tech sector, adding to the market’s caution.
With no action expected from the Federal Reserve (Fed), the focus will be on the following press conference by Chairman Jerome Powell. Powell is expected to face questions on the central bank’s independence and his relationship with President Trump, beyond those related to the future of monetary policy.
XAU/USD short-term technical outlook
From a technical point of view, the daily chart for the XAU/USD pair shows it managed to post a higher high for the week before retreating. The risk remains skewed to the upside, although another corrective leg lower remains in the picture. In the mentioned chart, the bright metal keeps developing well above a bullish 20 Simple Moving Average (SMA) currently at $3,297.20, while the 100 and 200 SMAs maintain their upward slopes far below the shorter one. However, technical indicators head south, holding within positive levels but suggesting buyers have paused.
In the near term, and according to the 4-hour chart, the XAU/USD offers a neutral-to-bullish stance. The pair trades well above all its moving averages, with the 20 SMA advancing above an also bullish 100 SMA. Additionally, technical indicators consolidate within positive levels, with the Momentum indicator heading marginally lower, not enough to confirm an upcoming slide.
Support levels: 3,392.25 3,277.60 3,263.10
Resistance levels: 3,430.20 3,444.25 3,468.30
XAU/USD Current price: $3,387.65
- US-China initial trade talks set to begin next Wednesday, according to Sec Bessent.
- The Federal Reserve is widely anticipated to keep interest rates on hold.
- XAU/USD consolidates below $3,400 as market players await the Fed’s decision.
Gold consolidates just ahead of the $3,400 mark on Wednesday, unchanged on a daily basis as investors await the United States (US) Federal Reserve (Fed) monetary policy decision. The central bank is widely anticipated to keep interest rates on hold, as uncertainty about President Donald Trump’s tariffs weighs on US policymakers.
The US Dollar (USD) has been confined to familiar levels throughout the day, as investors assess different news. On the one hand, headlines indicated that the US and Chinese trade teams will meet in the upcoming days to de-escalate tensions. US Treasury Secretary Scott Bessent anticipated initial talks would begin on Saturday, clarifying that those would not be advanced discussions.
On the other hand, stocks trade with a sour tone amid big losses in the tech sector, adding to the market’s caution.
With no action expected from the Federal Reserve (Fed), the focus will be on the following press conference by Chairman Jerome Powell. Powell is expected to face questions on the central bank’s independence and his relationship with President Trump, beyond those related to the future of monetary policy.
XAU/USD short-term technical outlook
From a technical point of view, the daily chart for the XAU/USD pair shows it managed to post a higher high for the week before retreating. The risk remains skewed to the upside, although another corrective leg lower remains in the picture. In the mentioned chart, the bright metal keeps developing well above a bullish 20 Simple Moving Average (SMA) currently at $3,297.20, while the 100 and 200 SMAs maintain their upward slopes far below the shorter one. However, technical indicators head south, holding within positive levels but suggesting buyers have paused.
In the near term, and according to the 4-hour chart, the XAU/USD offers a neutral-to-bullish stance. The pair trades well above all its moving averages, with the 20 SMA advancing above an also bullish 100 SMA. Additionally, technical indicators consolidate within positive levels, with the Momentum indicator heading marginally lower, not enough to confirm an upcoming slide.
Support levels: 3,392.25 3,277.60 3,263.10
Resistance levels: 3,430.20 3,444.25 3,468.30
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.