XAU/USD Current price: $2,572.12
- The Federal Reserve is about to announce its decision on monetary policy.
- A 25 basis points rate cut has been already priced in, but officials could still surprise markets.
- XAU/USD turned lower in the near term, the Fed will set the tone.
Gold hovers around $2,570 a troy ounce on Wednesday, unchanged on a daily basis as the Federal Reserve’s (Fed) monetary policy announcement looms. The United States (US) central bank is expected to trim interest rates for the first time in four years after pushing toward record highs amid soaring inflation in the pandemic aftermath. Policymakers are also weighing the effects of monetary restrictions on economic progress, but the market won’t hear that from them.
The Fed will also release the Summary of Economic Projections (SEP) with fresh forecasts for growth, inflation and unemployment and officials´ views on the future path for monetary policy. The latter could have a large impact on the US Dollar, as, ahead of the announcement, financial markets have already priced in a 25 basis points (bps) rate cut.
Generally speaking, the more dovish the event, the more will the US Dollar lose against its major rivals, while an unexpected hawkish outcome will likely have a larger impact amid the surprise factor, benefiting the American currency.
XAU/USD short-term technical outlook
From a technical point of view, the daily chart for XAU/USD shows the risk skews to the upside. The pair holds near an all-time high of $2589.50 posted this week, while all moving averages aim higher, far below the current level. The closest one is the 20 Simple Moving Average (SMA), providing support in the $2,520 price zone. At the same time, technical indicators hold well above their midlines with uneven and limited directional strength.
In the near term, however, the risk leans to the downside. A directionless 20 SMA provides intraday resistance, rejecting advances. The 100 and 200 SMA have partially lost their upward strength, far below the current level. Finally, technical indicators aim lower, with the Momentum indicator accelerating lower below its 100 line.
Support levels: 2,561.65 2,550.00 2,542.40
Resistance levels: 2,574.80 2,590.00 2,605.00
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.

GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.

Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.

Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.

Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.