XAU – Gold traded sideways ahead of the Fed meeting, with the market remaining cautious

Gold fell slightly on Monday as investors remained cautious ahead of the Federal Reserve's two-day policy meeting. The market widely expects the Fed to cut interest rates by 25 basis points on Wednesday, with traders viewing the probability at around 90%, compared to about 66% in November. Investors are also hoping to glean clues about future monetary policy from Chairman Powell's remarks at the post-meeting press conference. Meanwhile, as Kyiv faces pressure from the US to agree to a peace agreement with Russia, leaders from France, Germany, and the UK expressed strong support for Ukrainian President Zelensky in London, calling it a "critical moment" for Kyiv.

Technically, gold prices have been trading in a narrow range since reaching $4264 last Monday. The RSI and Stochastic indicators on the charts show initial signs of a pullback, suggesting a potential short-term correction. Support levels are estimated at 4170 and 4156, with the next levels at 4125 and 4110. Key support is expected at $4040. Resistance levels are expected at $4220 and $4245, followed by $4265 and $4278.

London Gold, December 9
Forecast Early Range: 4179 – 4201
Resistance: 4209 – 4222 – 4235 – 4258
Support: 4168 – 4158 – 4149 – 4129

SPDR Gold Trust Holdings:
December 1st – 1,045.43 tons
December 2nd – 1,050.01 tons
December 3rd – 1,046.58 tons
December 4th – 1,050.58 tons
December 5th – 1,050.25 tons
December 8th – 1,050.25 tons

8/12 AM London Gold Fix: $4204.15 
8/12 PM London Gold Fix: $4188.25 

Any questions? contact our professional analysis team