XAU/USD: Gold prices on the move; pushing prices towards 1235.60

EUR/USD manages to regain the smile on Wednesday, advancing marginally to the 1.1630 zone after four consecutive daily pullbacks, all amid the reneweed offered stance in the           US Dollar prior to the FOMC event. The Fed is largely anticipated to trim its interest rates by 25 bps.

GBP/USD sets aside two daily declines in a row and trades with modest gains just above 1.3300 the figure on Wednesday. Cable’s better tone comes on the back of some selling pressure hurting the Greenback prior to the FOMC event. Next on tap across the Channel will be the GDP figures on Friday.

Gold trades slightly on the back foot on Wednesday amid a weaker US Dollar and the continuation of the upside momentum in US Treasury yields across the curve. The precious metal remains cautious ahead of the expected 25 bps rate cut by the Fed and the release of the updated “dots plot”.

The United States (US) Federal Reserve (Fed) will announce its interest rate decision on Wednesday, with markets widely expecting the US central bank to deliver a final 25 bps cut for 2025.

The Bank of Canada is widely expected to maintain its benchmark interest rate at 2.25% at its meeting on Wednesday. That would follow two consecutive quarter-point rate cuts in September and October.

Zcash (ZEC) price extends gains, trading above $440 on Wednesday after rallying nearly 30% so far this week. ZEC’s rising open interest, elevated bullish bets, and a shift to positive funding rates all point to stronger demand.