Gold prices have continued to decline amid market uncertainty, with traders cautious ahead of the Federal Reserve’s policy decisions. As the metal remains sensitive to shifting market sentiment, its direction will depend on global economic factors and any signs of potential rate cuts from the Fed.
Gold prices retreat amid market uncertainty
Gold prices declined further on Tuesday, trading at USD 2,740.16 per ounce, marking a 1.10% drop during the latest trading session.
This continued slide follows Monday’s sell-off, reflecting heightened market volatility and trader caution ahead of the Federal Reserve’s policy meeting.
After touching a session high of USD 2,745.28, spot gold faced renewed selling pressure, falling to an intraday low of USD 2,736.42.
This downward momentum challenges earlier expectations of price stability, underscoring gold’s vulnerability to shifting market sentiment.
Technical analysis
Gold (XAU/USD) is currently trading at 2,740.16, down by 1.10%, maintaining its bearish trajectory.
Gold struggles at 2740 with bearish momentum and critical support at 2730 in focus, as seen on the VT Markets app.
The price remains below the short-term 5- and 10-period moving averages, reinforcing downside pressure.
Meanwhile, it is testing the 30-period moving average, indicating the potential for a consolidation phase.
The MACD histogram stays below zero with widening bars, confirming bearish momentum. However, traders should watch for signs of a bullish crossover, as the MACD line edges closer to the signal line.
Key support lies at the 2,730 level, where traders should monitor for potential breakdowns or rebounds
A bullish crossover in the MACD could signal a short-term reversal, but updates from the Federal Reserve and global economic data will play a crucial role in shaping gold’s medium-term outlook.
However, any forward guidance on potential rate cuts could significantly impact Treasury yields and, in turn, gold prices.
“Should Fed Chair Jerome Powell hint at upcoming rate cuts, this could pressure Treasury yields and provide support for gold,” stated Tim Waterer, chief market analyst at KCM Trade.
Nevertheless, gold faces challenges from broader market uncertainties. Calls from President Donald Trump for rate cuts and continued fiscal stimulus could influence the Federal Reserve’s outlook in the months ahead.
With market volatility persisting and critical Fed decisions on the horizon, gold prices are likely to remain turbulent. Further direction will depend on updates from the Federal Reserve and key global economic indicators.
