Gold prices remained in a tight range as traders showed little conviction ahead of the Federal Reserve’s crucial policy announcement. Uncertainty over the central bank’s stance on interest rates has kept investors on the sidelines, limiting major price movements in the precious metal.
With markets anticipating signals on the Fed’s future policy path, gold’s upside remains capped by the potential for prolonged higher interest rates. A hawkish tone from policymakers could strengthen the dollar and pressure gold prices, while any dovish hints might provide room for a breakout.
Investors are also weighing broader economic risks, including persistent inflation concerns and global growth slowdowns, which could drive safe-haven demand for gold. However, profit-taking and cautious positioning ahead of the announcement have kept prices from gaining significant traction.
Until the Fed provides clarity on its policy outlook, gold traders are likely to remain hesitant. Market participants will closely analyze any shifts in the central bank’s rhetoric, which could set the tone for the next leg of price action in the precious metals market.
