Gold opens with bullish gap but stalls below $4,100 ahead of Fed decision
Gold started the week with a bullish gap but struggled to hold above $4,100, as traders await the FOMC meeting. Weakness in the US dollar, driven by US-Iran diplomacy and lower oil prices, provided support.
Gold (XAU/USD) kicked off the week with an upward price gap, extending gains from the previous session. However, the precious metal failed to break and hold above the $4,100 resistance level, signaling caution among bulls.
The US dollar came under pressure from renewed diplomatic efforts between the US and Iran, as well as declining crude oil prices. This offered some support to gold prices, but the momentum was not enough to sustain a breakout.
Market participants are now focused on the upcoming Federal Open Market Committee (FOMC) meeting, which begins this week. Traders are reluctant to take large positions ahead of the Fed's policy decision, keeping gold confined below key resistance.
Source: FXStreet Forex News