Gold Eases for Third Day, Retests $4000 Support Ahead of Fed and Inflation Data
Gold prices declined for a third consecutive session on Wednesday, falling back to the key $4000 support level. Fading initial diplomatic optimism in the Middle East after fresh U.S.-Saudi strikes added pressure, with traders awaiting the Fed and upcoming inflation figures.
XAU/USD remained on the defensive mid-week, slipping for a third straight day and revisiting the highly significant $4000 support zone. The move came as earlier hopes for a diplomatic resolution to Middle East hostilities lost momentum following reports of renewed attacks by U.S. and Saudi forces.
The initial enthusiasm that briefly eased safe-haven demand has been replaced by caution ahead of a busy U.S. calendar. Market participants are squarely focused on the Federal Reserve’s policy signals and the release of critical inflation data, which could shape the near-term trajectory for gold.
A clear break below $4000 would open the door to deeper losses, while any hawkish Fed tone or sticky inflation prints may further weigh on the non-yielding metal.
Source: FXStreet Forex News