Gold prices experienced a decline during the late North American session on Tuesday, influenced by a robust US Dollar, despite a decrease in US Treasury bond yields. Market participants are eagerly anticipating the upcoming monetary policy announcement by the US Federal Reserve (Fed) on Wednesday, which will be accompanied by a press conference led by Fed Chair Jerome Powell.
Amidst this anticipation, XAU/USD prices are expected to hover around $2,150 as traders refrain from making significant new bets in either direction regarding the future of the yellow metal.
The non-yielding nature of gold has led to subdued market activity as traders await the decision of the Federal Open Market Committee (FOMC). Alongside the monetary policy statement, policymakers are anticipated to provide updates on their projections for the US economy. There is a growing apprehension among traders that the Fed might revise its estimates for the Federal Funds Rate (FFR), contributing to the cautious sentiment prevailing in the market.
