Gold Traders Await Fed Decision as Prices Hover Near $3,975

New York, NY – Gold prices are steady around $3,975 as traders anticipate the Federal Reserve‘s policy announcement later today. This follows a recent decline where the metal lost nearly 5 percent after two weeks of trading.

The market expects the Fed to maintain interest rates at 4.00%. However, attention is on how the Fed communicates its economic outlook. A hawkish tone may strengthen the U.S. dollar further, while a dovish stance could provide temporary relief for gold.

Recent U.S. economic data has been solid, with consumer confidence rising to 94.6 in October, surpassing predictions. Additionally, though housing indicators presented a mixed picture, pending home sales increased by 1.6%, indicating robust consumer activity despite high mortgage rates.

Commodity markets are also affected by fluctuations in crude oil prices. A recent drop in crude inventories has supported higher oil prices, which keeps inflation expectations elevated and dampens gold’s appeal as a hedge.

In Asia, market sentiment remains cautious following mixed economic data from China. Gold is trading within a narrow range as investors await clarity on the Fed’s decision and ongoing economic conditions.

The technical analysis indicates that gold remains trapped in a descending channel and needs to break resistance levels around $4,020–$4,045 to shift its trajectory. Failure to hold above $3,960 could lead to increased selling pressure.

As traders prepare for the Fed’s statement, they are on the lookout for volatility. Market positioning is light as expectations lean towards maintaining interest rates, but the actual policy tone could lead to sharp market movements.

“If the Fed indicates a readiness for future rate cuts, it could trigger a bounce in gold prices,” said a market analyst. “However, the general sentiment appears to favor continued bearish momentum unless key resistance levels are reclaimed.”