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Gold holds below $4,050 as traders await the two-day FOMC decision
The US dollar stays under its monthly high and geopolitical and energy-supply concerns keep both safe-haven demand and inflation fears in focus ahead of the FOMC outcome.
Gold (XAU/USD) struggled to extend its intraday rebound from an over one-week low, trading below the $4,050 level through the first half of the European session on Wednesday, FXStreet said.
FXStreet added that the US dollar remained soft for a second straight day, with investors largely waiting for the results of a two-day FOMC meeting, a dynamic that had been supporting gold.
Still, the outlook was limited as tensions between the US and Iran fed a geopolitical risk premium that tends to support the US dollar, even as the market also weighs the potential impact on global energy supplies.
FXStreet noted that Iran’s IRGC launched ballistic missiles targeting US forces in the Middle East, all of which were intercepted, and that the US and Saudi forces struck multiple sites in eastern Iraq in retaliation for more than 30 drone attacks in the prior three days, while further attacks involving the Strait of Hormuz and a missile strike on a Saudi oil tanker were also cited.
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