Gold holds elevated levels ahead of Fed minutes and key US data

Gold (XAUUSD) is stabilizing near elevated levels as markets wait for clearer direction. Focus has shifted to the Federal Reserve’s January meeting minutes for near-term guidance. Thin liquidity and muted physical demand continue to slow momentum. At the same time, unresolved geopolitical developments have kept sentiment cautious. This combination has allowed gold to hold higher ground while the market waits for fresh signals.

Gold remains elevated as Fed minutes and policy outlook take focus

Gold is attempting to stabilize near elevated levels as markets wait for clearer direction. The metal is awaiting the release of the January meeting minutes from the Federal Reserve for near-term guidance. Trading conditions remain subdued due to low liquidity and muted physical demand. In this environment, policy expectations play a larger role in shaping price behavior. The minutes are expected to offer insight into how policymakers assess inflation risks and future easing.

Meanwhile, markets continue to price in roughly 60 basis points of rate cuts this year, according to the CME Group FedWatch Tool. Cooling inflation trends have kept those expectations intact, even as labor data remains firm. The balance between slowing price pressures and steady employment has delayed near-term easing but preserved expectations for cuts later in the year.

Geopolitical developments have also influenced sentiment. Talks between the United States and Iran concluded without a final agreement, keeping uncertainty elevated. Iranian officials confirmed progress on guiding principles, but key details remain unresolved. This backdrop has revived some safe-haven demand, even as periodic Dollar strength continues to cap upside momentum. Focus now shifts toward major US data releases and a Supreme Court ruling on tariffs later this week.

Gold maintains key support as ascending broadening wedge stays intact

The gold chart below shows price trading within an ascending broadening wedge. Higher highs and higher lows continue to define the structure, while expanding swings reflect rising volatility within an uptrend. The upper boundary capped the late January advance near $5,600 before a sharp pullback followed. This behavior reflects a well-established bullish phase rather than a breakdown.

After the pullback, price retraced toward the lower edge of the ascending broadening wedge. Support emerged near the rising zone around $4,600. Price stabilized around this level, defining a clear short-term base. This behavior shows that demand remains active within higher price ranges.

Gold is now consolidating just below the $5,000 area, with price stabilizing beneath former resistance. Short-term pauses remain possible as price digests recent gains. As long as gold holds above the lower wedge boundary, the broader setup continues to favor continuation.

Gold outlook: Stability holds as markets await clear direction

Gold is holding near elevated levels as markets wait for clarity from policy signals and incoming data. Thin liquidity and muted physical demand continue to slow momentum and amplify sensitivity to headlines. At the same time, unresolved geopolitical issues are supporting cautious positioning and limiting downside follow-through. From a technical perspective, price remains contained within the ascending broadening wedge, with support holding near the lower boundary. As long as this structure holds, gold is likely to remain steady while markets await a clearer catalyst for direction.