Gold Price Drops Toward $4,050 Ahead of Fed Meeting

XAU/USD came under renewed selling pressure early Tuesday, dropping toward the $4,050 handle after failing to sustain levels above $4,100. The decline reflects a risk-off mood as the market shifts focus to the Federal Reserve’s monetary policy decision due later this week.

The two-day Fed meeting begins today, with investors widely expecting policymakers to hold rates steady. However, the post-meeting statement and updated economic projections will be scrutinized for clues on the timing of future rate cuts.

With sellers firmly in control, gold remains vulnerable to further downside if the Fed signals a hawkish stance, potentially testing lower support levels.