Gold prices (XAU/USD) started the week cautiously, continuing their sideways trend late last week after briefly touching a record high near $3,675 on Tuesday. This movement reflects a lack of strong buying confidence, as market participants held back ahead of a busy week of central bank decisions.
As of this writing, gold was trading around $3,657 (up 0.37% daily) after bouncing from $3,626. The $3,650 area remains short-term resistance, so prices are likely to consolidate within a narrow range.
The main focus is the Fed's decision on Wednesday. The market is pricing in a 25 bps cut, with a small chance of a 50 bps surprise. At the same time, decisions by the Bank of England (BoE), Bank of Japan (BoJ), and Bank of China (BoC) are adding to the busy agenda and potentially increasing volatility across asset classes—including gold.
Sentiment-wise, gold remains supported by subdued US Treasury yields, a weak USD, and persistent geopolitical risks. If the Fed adopts a more dovish tone, gold has the potential to continue its upward movement from its highs; conversely, a more cautious/hawkish tone could trigger a correction, especially if $3,650 fails to break through again and $3,626 is retested.
Source: Newsmaker.id