After hitting a three-week low near $3,916 during Wednesday’s Asian session, gold prices recovered slightly. This modest rebound came as traders adjusted positions ahead of the US Federal Reserve’s policy statement later in the day. A 0.25% rate cut is widely expected, but the Fed’s guidance on future reductions remains the key market driver.
The dollar remains steady as investors wait, limiting gold’s immediate upside. Optimism over US-China trade negotiations—reports suggest a potential agreement before the presidents meet—has slightly reduced safe-haven demand for gold. Still, concerns over the long-term trade outlook have eased somewhat.
Geopolitical uncertainty and the ongoing US government stalemate continue to lend gold some support. Looking at charts, $4,000 acts as a key hurdle; however, $3,900 provides a floor.
Should prices consistently climb past $4,000, we might see a quick jump to $4,060. Conversely, falling under $3,886 could lead to further losses, potentially hitting $3,800. Traders are hesitant; the Federal Reserve’s upcoming choice will probably dictate where gold heads next.
