Gold Holds Steady as Fed Decision and Iran Tensions Loom
Gold adopts a cautious tone as the upcoming Fed decision temporarily takes focus away from escalating Middle East tensions.
FUNDAMENTAL OVERVIEW:
Gold (XAU/USD) holds steady around $3,385 on Wednesday, buoyed by ongoing geopolitical tensions and investor caution ahead of the Federal Reserve’s policy announcement.
At present, the metal trades above $3,380 as markets await key updates from the Fed, including interest rate projections, economic forecasts, and Chair Jerome Powell’s commentary—factors that could significantly sway both the U.S. Dollar and gold prices later in the day.
Recent remarks from U.S. President Donald Trump have also bolstered safe-haven demand. On Tuesday, he left the G7 summit in Canada early to convene with national security officials at the White House, reviewing options for potential U.S. involvement in the escalating Israel–Iran conflict.
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According to The Wall Street Journal, while military strikes were discussed, no final decision was reached. However, Trump intensified rhetoric via Truth Social, declaring, “We now have complete and total control of the skies over Iran,” and reiterating calls for Iran’s “unconditional surrender.” Rejecting ceasefire proposals, he emphasized a permanent end to Iran’s nuclear capabilities, further stoking market anxiety and strengthening gold’s safe-haven appeal.
GOLD TECHNICAL ANALYSIS CHART:
Technical Overview:
Gold is trading within an up channel.
Gold is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Neutral trend.
Immediate Resistance level: 3400.00
Immediate support level: 3370.00
HOW TO TRADE GOLD
Following a significant surge, Gold experienced a rejection on the higher time frame, resulting in a downside retracement. Although it initially broke a support zone, the price quickly reversed upwards and is now consolidating near resistance. A break above this resistance could signal further upward movement.