Home›Forex›Major Pairs›Gold rebounds near $4,000 as USD outlook turns cautiou…

Gold rebounds near $4,000 as USD outlook turns cautious ahead of FOMC

Iran-US tensions and recent missile activity are keeping safe-haven demand supported for the US dollar, while markets wait for the two-day FOMC decision to guide interest-rate expectations.

Reported · Written up by our desk · Major Pairs

Gold (XAU/USD) recovered modestly after testing an over one-week low near the $4,000 level earlier in the Asian session, helped by a small pullback in the US dollar, according to FXStreet.

FXStreet said the move for the greenback has been supported by renewed geopolitical risk. The outlet pointed to reports that Iran-aligned forces targeted US personnel with multiple ballistic missiles late Tuesday, with US Central Command stating the missiles were intercepted, and it noted subsequent US and Saudi strikes in eastern Iraq in retaliation for drone attacks over the prior three days.

At the same time, FXStreet said traders may hold off on new positioning ahead of a two-day FOMC meeting, with the outcome expected to shape the path of US interest rates and, in turn, USD demand. The outlet also cited energy-supply concerns from the Middle East conflict, including missile activity involving a Saudi oil tanker, as a factor that has helped crude oil prices rebound and revived inflation fears.

FXStreet added that the backdrop is still broadly consistent with a near-term positive bias for the dollar, while warning that gold could face fresh selling if it rises, citing the market’s ongoing range-bound action and a bearish consolidation pattern since June 19 tied to a technical level near the 200-day simple moving average.

Latest closeGold $4,023.80 ▼1.2%|WTI crude $81.23 ▼1.7%

More like this

Sources