Gold’s $4,000 Support Under Threat Ahead of Fed Decision
Gold prices are under pressure as the US Dollar strengthens, with traders eyeing the $4,000 key support level ahead of a critical Federal Reserve meeting. Oil’s decline offers little relief.
Gold (XAU/USD) is trading on the defensive on Tuesday, weighed down by a firmer US Dollar. The precious metal is approaching the psychologically important $4,000 support zone, which faces a crucial test from the upcoming Federal Reserve policy decision.
Despite a pullback in oil prices—driven by hopes of easing tensions between the US and Iran—gold has failed to find a safe-haven bid. Instead, the stronger greenback is keeping the metal under pressure as markets reposition ahead of the Fed’s guidance on rates.
A break below $4,000 could accelerate selling, while holding the level may depend on whether the central bank strikes a dovish tone.
Source: FXStreet Forex News