Gold (XAU/USD) prices remained depressed through the first half of the European session on Wednesday, albeit lacked any follow-through selling and so far, has held above the one-week low touched the previous day.
A less dovish Federal Reserve (Fed) outlook remained supportive of the US Treasury bond yields and acted as a headwind for the non-yielding yellow metal. However, the US Dollar (USD) investors seemed reluctant to place any aggressive bets and preferred to wait for the key FOMC decision.
Investors will be closely watching the latest economic projections, including the so-called dot plot, and Fed Chair Jerome Powell's remarks at the post-meeting press conference for clues on the future path of interest rate cuts.
This, in turn, will influence the USD and provide some meaningful impetus to Gold prices. Ahead of the key central bank risk event, the cautious market sentiment, along with persistent geopolitical risks and trade war fears, should help limit the downside for the safe-haven XAU/USD.
Source: FXStreet
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