Gold prices remained supported above $2,650 on Wednesday, showing a modest positive bias as investors treaded cautiously ahead of the Federal Open Market Committee (FOMC) minutes. Market sentiment remains focused on clues about the Federal Reserve’s future monetary policy, tempering enthusiasm for the precious metal’s recent gains.
Despite the uptick, the rally lacks follow-through momentum, with traders hesitant to take large positions amid uncertainty over the Fed’s next steps. The minutes are expected to provide insight into policymakers’ views on inflation and interest rates, both critical to gold’s appeal as a hedge against economic uncertainty.
The broader market remains subdued, with risk appetite fluctuating as key U.S. economic data looms later this week. Gold, often inversely correlated with the dollar and Treasury yields, could face further resistance if hawkish signals emerge from the FOMC discussions.
For now, the metal holds its ground above the $2,650 level, reflecting cautious optimism. However, without clearer direction from the Fed, gold’s trajectory may remain constrained, keeping investors on edge in the near term.
