Gold consolidates near $4,000 as recovery remains fragile ahead of Fed decision
Gold (XAU/USD) consolidates modest gains on Monday after last week’s sharp decline pushed the metal to $3,975, its lowest level since August. A pullback in Oil prices offers support as traders react to diplomatic efforts to ease tensions in the Middle East.
Gold prices have stabilized near $4,000 after a recent dip, but the recovery remains uncertain ahead of the Federal Reserve's decision. The metal briefly fell to $3,975 last week, its lowest point since August, due to rising oil prices and expectations of further Federal Reserve tightening. This week, traders' eyes are on the Federal Reserve's monetary policy announcement, which could either support or undermine Gold's price above the $4,000 level.
The Federal Reserve is expected to keep interest rates unchanged at 3.75%-4.00% during their meeting, but some inflation data may heighten the likelihood of a December hike. Currently, XAU/USD trades around $4,016, up 0.50% on the day.
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