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Gold Prices Hold Steady as Investors Await Fed Decision

Gold prices traded in a narrow range on Tuesday, holding steady near $3,380/oz as global investors maintained a cautious stance ahead of the highly anticipated U.S. Federal Reserve policy decision. The metal's stability was underpinned by lingering geopolitical tensions in the Middle East, which continued to drive safe-haven demand despite a stronger U.S. dollar.

While the dollar's recent gains typically pressure non-yielding assets like gold, the ongoing conflict between Israel and Iran, along with broader uncertainty in the region, has supported bullion's appeal. Markets remain concerned about the risk of wider military escalation and its potential to disrupt global trade and fuel volatility across asset classes.

Investors are watching closely for any hawkish signals from the Fed, with expectations leaning toward a pause in rate hikes, though language around inflation and future tightening will be closely scrutinized. Any indication of prolonged high rates could weigh on gold, which tends to lose its shine in a high-yield environment. Investing

Technical Outlook Mixed as Gold Awaits Directional Catalyst

From a technical perspective, gold has been consolidating after failing to breach resistance at the $3,440 level. The precious metal is now hovering near its 20- and 50-day exponential moving averages (EMAs), suggesting a phase of price digestion. The medium-term trend remains bullish, but short-term momentum has shown signs of fading.

Volume indicators point to buying interest near local lows, but without the conviction needed to spark a breakout. Traders note that gold’s ability to stay above the psychological $3,350 mark is key to maintaining upward pressure in the near term. A decisive move beyond $3,440 could open the path to fresh highs, while failure to hold above support may trigger a short-term pullback.

As the Fed announcement looms, along with ongoing geopolitical risks, gold is likely to remain reactive to both macroeconomic commentary and real-time developments in global affairs. Until clearer direction emerges, the metal is expected to trade within a tight range. The Business Times

 

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