The price of gold expands the movement in range while the operators expect the decision on the Fed rates

• The price of gold struggles to gain traction while operators remain on the sidelines before the Fed rates decision.
• The USD goes back from the weekly maximum in the midst of features of fees of the Fed and provides support to the merchandise.
• Uncertainties related to commerce and increased geopolitical tensions further benefit from Xau/USD as a safe refuge.

The price of gold (Xau/USD) reverses a fall in the Asian session and reaches a new daily maximum in the last hour, although it struggles to capitalize on the movement beyond the $ 3,400 brand. The increase in geopolitical tensions in the Middle East, together with the persistent uncertainties related to trade, continue to weigh on the feeling of investors and act as a tail wind for the precious metal of safe refuge. Apart from this, a modest weakness of the US dollar (USD) is considered another factor that supports the merchandise.

However, the fall of the USD seems limited since operators seem reluctant and choose to wait for more clues on the Federal Reserve Rate (Fed) trace path. Therefore, the attention will remain focused on the result of a two -day FOMC policy meeting, which will be announced later during the US session. Perspectives will influence the short -term USD price dynamics and determine the following section of a directional movement for the price of gold, which does not yield. This, in turn, requires caution for Xau/USD bulls.

Daily summary of market movements: gold price operators expect signs of feat cuts from the Fed before opening directional positions

• The attention of investors remains firmly in the next decision of interest rates of the Federal Reserve, which will be announced later on Wednesday. The US Central Bank is expected to maintain its reference rate without changes in the middle of the concern that the tariffs of US President Donald Trump could increase consumer prices.
• Therefore, the accompanying policy declaration, which includes the “updated point graph, and the comments of the president of the FED, Jerome Powell, during the press conference after the meeting will be examined closely in search of clues on the future path of feat cuts. The perspectives, in turn, should influence the price of gold.
• Looking ahead to the Central Bank’s key event, the disappointing macroeconomic data of the United States published on Tuesday aimed at a weakened economy and reaffirmed the bets that the Fed will reduce the indebtedness costs in September. This maintains a limit in the rebound of the US dollar during the night towards the weekly peak.
• The US Census Office reported that retail sales fell 0.9% in May compared to a contraction of 0.7% expected and a 0.1% drop in April. In addition, the US industrial production did not comply with estimates and contracted 0.2% in May after a 0.1% reviewed increase a month earlier.
• Meanwhile, the conflict and continuous air exchanges between Israel and Iran continued for the sixth consecutive day. In addition, Trump intensified his rhetoric and demanded the unconditional surrender of Iran, feeding speculations about a possible participation of the US in the war.
• On the front -related front, Trump told journalists aboard the Air Force One that tariffs in the pharmaceutical sector “will arrive soon.” This adds a layer of uncertainty before the deadline of July 9 for higher reciprocal tariffs of the US and continues to weigh on the feeling of investors.

The Alcist Technical Setup of the Price of Gold supports the case for a movement towards the re-test of the historic peak

From a technical perspective, the formation of an ascending channel points to a well -established short -term bullish trend. In addition, the positive oscillators in the daily chart suggest that any intradic fall could still be seen as a purchase opportunity, which should help limit the fall in the price of gold near the area of ​​$ 3,340-3,335, or the lower limit of the trend channel. However, a convincing rupture below the latter would deny the positive perspective and change the bias in favor of the bearish operators.

On the other hand, the $ 3,400 mark could continue to act as an immediate obstacle, above which the price of gold could rise to the region of $ 3,434-3,435. Some follow-up purchases, which lead to subsequent fortress beyond the area of ​​$ 3,451-3,452, or the maximum of several weeks reached on Monday, should allow the price of gold to challenge the historical peak, around the psychological brand of $ 3,500 reached in April. This level coincides with the barrier of the ascending channel, which if it is exceeded will be seen as a new trigger for the bulls.