Gold price struggles below $3,400 as traders remain cautious ahead of the Federal Reserve’s policy decision. On Wednesday, gold trimmed early losses but continued trading below the important threshold in the European session.
The U.S. Dollar failed to gain strength and hovered near its weekly low. This limited pressure on gold but didn’t lift it much either. The yellow metal stayed weak despite ongoing global uncertainty.
Geopolitical risks are mounting. The Russia-Ukraine war drags on, weighing heavily on global market sentiment. Simultaneously, the Middle East remains unstable, while military tensions flare up along the India-Pakistan border. These conflicts often drive demand for safe-haven assets like gold.
However, another factor is pulling gold in the opposite direction. Optimism about U.S.-China trade talks in Switzerland is boosting investor appetite for risk. This has led many traders to shift toward stocks and away from non-yielding assets like gold.
Amid these crosswinds, traders are hesitant to take bold positions. They are waiting for the Federal Open Market Committee (FOMC) to conclude its two-day meeting. The Fed’s policy update could move the dollar significantly and give gold a new direction.
Right now, the market feels stuck. Gold had climbed in the previous two sessions, but that short rally has ended. Most investors are sitting on the sidelines, observing the next move.
Gold price struggles below $3,400, reflecting nervous energy across financial markets. Every development—from central bank moves to diplomatic headlines—has the power to shift sentiment quickly.
With uncertainty high, safe-haven demand continues to provide a floor for gold. However, stronger risk appetite and interest rate concerns limit any breakout.
Gold price struggles below $3,400, and for now, traders are trapped between caution and opportunity. The next few days may prove critical in setting a clearer direction. Until then, gold remains range-bound, caught in the middle of economic and political crosscurrents.
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