The post Gold consolidates around $2,650 as traders keenly await Fed policy decision appeared on BitcoinEthereumNews.com.

Gold price struggles to gain any meaningful traction and remains confined in a narrow range. Expectations for a less dovish Fed and elevated US bond yields cap the non-yielding XAU/USD. Geopolitical risks lend support to the safe-haven precious metal ahead of the FOMC meeting. Gold price (XAU/USD) edges higher during the Asian session on Tuesday, though it lacks follow-through and remains close to a one-week low touched the previous day. Traders seem reluctant and opt to wait for the outcome of a two-day FOMC meeting on Wednesday before placing fresh directional bets around the non-yielding yellow metal. The focus will be on the accompanying policy statement, especially the so-called dot plot, and Fed Chair Jerome Powell’s speech at the post-meeting press conference. Investors will look for cues about the future rate-cut path, which will drive the US Dollar (USD) and provide some meaningful impetus to the non-yielding yellow metal.  Heading into the key event risk, persistent geopolitical tensions and concerns about US President-elect Donald Trump’s tariff plans lend some support to the safe-haven Gold price. Meanwhile, the prospects for a less dovish Fed, along with expectations that Trump’s policies may lead to an increase in government borrowing, remain supportive of elevated US Treasury bond yields. Apart from this, a positive risk tone might cap the XAU/USD, warranting caution before confirming that the recent pullback from over a one-month high touched last week has run its course.  Gold price traders opt to wait for more cues about the Fed’s rate cut before placing directional bets Data released on Monday showed that a big part of the US economy expanded at the fastest pace in more than three years. In fact, the S&P Global flash US Services Purchase Managers Index (PMI) rose from 56.1 to 58.5 in December – the highest level…

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Filed under: News - @ December 17, 2024 4:24 am