Gold Remains Under Pressure Ahead of Fed Decision and Inflation Data

Gold extended its decline for a third consecutive session on Wednesday, retesting the critical $4,000 support level as optimism over diplomatic efforts in the Middle East faded following renewed military strikes involving U.S. and Saudi forces in Iraq.

The stronger U.S. dollar continued to weigh on the precious metal, while investors remained cautious ahead of the Federal Reserve’s policy decision and comments from Chair Kevin Warsh. The Fed is widely expected to leave interest rates unchanged, but markets will closely assess policymakers’ guidance for clues on the future path of monetary policy.

Developments in the Middle East remain a key risk factor for markets. Any further escalation could reignite inflation concerns, potentially influencing central bank expectations and adding volatility across asset classes.

Attention will also turn to Thursday’s release of the U.S. Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred measure of inflation, which is expected to provide fresh insight into underlying price pressures.

For now, gold is likely to remain under pressure, particularly if the Fed adopts a more hawkish tone or signals a greater willingness to tighten policy further. A sustained break below the $4,000 support zone could trigger a fresh wave of selling and accelerate the downside move.

Res: 4077; 4116; 4166; 4180
Sup: 3960; 3942; 3900; 3842