Gold prices (XAU/USD) found buyers after a moderate pullback on Monday, showing a mild recovery during Tuesday’s Asian and European sessions before encountering resistance at $2,390.
Reports that Israel aims to avoid an all-out war in the Middle East have alleviated geopolitical concerns, leading the safe-haven US Dollar (USD) to give up some gains.
Investors are now turning their attention to the Federal Reserve’s (Fed) upcoming monetary policy decision on Wednesday. While the Fed is widely expected to leave interest rates unchanged, the spotlight will be on the press release from Fed Chair Jerome Powell. With inflationary pressures on a downward trend and signs of a cooling labor market, Powell might hint that the easing cycle could commence before December. Such a signal would likely weaken the USD and bolster precious metals.
