XAU/USD remains supported near $4,000 as traders await the Fed’s rate decision amid mixed USD demand and Middle East tensions.
Gold (XAU/USD) stabilizes above the $4,000 mark after dipping to a two-week low earlier in the session, supported by a softer US Dollar (USD). However, escalating US-Iran tensions cap further USD weakness, leaving traders cautious ahead of the Federal Reserve’s policy announcement.
The precious metal’s consolidation follows a volatile Asian session, with investors balancing Fed rate cut expectations against geopolitical risks. Comparable periods show gold often rallies on dovish Fed signals but faces pressure from safe-haven USD demand during crises.
Markets remain on edge as the FOMC decision looms, with the outcome likely to dictate near-term USD trends and gold’s trajectory. Middle East developments, including US retaliatory strikes, add to uncertainty but have yet to trigger significant safe-haven flows.