XAU/USD remains steady as traders await the FOMC outcome, with USD weakness supporting bullion amid US-Iran deal optimism.
Gold prices (XAU/USD) maintain levels above $4,300 during the Asian session but fail to extend weekly gains. The US Dollar (USD) stays subdued due to optimism over a US-Iran interim peace deal, which supports the non-yielding metal. However, bullion remains below Monday’s weekly high and a key 200-day Simple Moving Average as investors await the Federal Reserve’s policy decision.
The two-day FOMC meeting concludes today, with the outcome expected to influence USD demand and gold’s trajectory. Recent geopolitical developments, including a 60-day ceasefire and plans for a $300 billion private investment fund in Iran, have kept markets cautious. Contradictory statements from US and Iranian officials add uncertainty, limiting aggressive USD selling.
Traders are refraining from significant bets until the Fed’s announcement, which could provide fresh direction for gold and broader markets.