Gold Price Analysis: XAU/USD wobbles above $1,950 as pre-Fed caution sneaks in
Gold keeps Tuesday’s pullback from the early-September high while taking rounds to $1,954/55 during the initial hours of Wednesday’s Asian session. The yellow metal earlier cheered the improved market sentiment but stepped back on the US dollar strength. Also weighing on the bullion could be the cautious mood of traders ahead of the Federal Open Market Committee (FOMC) meeting.
Will The FOMC Drive Gold Prices Higher or Lower? [Video]
The biggest market-moving event, that traders will be closely monitoring this week – is the outcome of the U.S Federal Reserve's two-day policy meeting, which is due to end on Wednesday, 16 September.
Last month, the Fed announced that the central bank’s inflation target could exceed 2%, which would drive inflation slightly higher, whilst keeping interest rates lower for longer. There is a huge focus on this event, as it’s the Fed’s last meeting prior to the U.S Presidential Election.
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