Gold blazes past one week high ahead of FOMC meet

Gold witnessed a sudden uptick in the prices in Monday's session and continues to trade with a positive bias for the second straight day after climbing to a one week high of $3386 during the Asian session. Support for the yellow metal stems from safe-haven demand driven by geopolitical instability unfolding between Israel and Houthi rebels in Yemen.
Additionally, the US Dollar remains under pressure as market participants react to ongoing economic uncertainty triggered by President Trump’s tariff policies. The lack of strong USD buying interest adds further underlying strength to gold.
However, despite these supportive factors, investors are cautious ahead of the Federal Reserve’s policy meeting starting today. This has led to subdued momentum in gold, with traders avoiding aggressive positions until there is more clarity from the FOMC regarding future monetary policy. As a result, while the overall trend remains positive, near-term price action may remain range-bound.
XAU/USD TECHNICAL OVERVIEW
Technical Structure: Gold has confirmed a breakout from a Doji candlestick pattern on the daily timeframe, indicating a continuation of bullish momentum after a brief indecisive phase. A consolidation breakout is visible on the 4-hour timeframe, further reinforcing the bullish sentiment. Currently, gold is consolidating on the 1-hour chart, suggesting a momentum build up before another leg higher. Traders should watch closely for a breakout or a pullback to support.
Intraday Trend/ Intraday Strategy: The intraday trend remains bullish and favours an approach of buying on dips near key support levels and buying breakouts from intraday consolidation.
Weekly Trend: Bullish
Key Resistance Levels: 3372, 3380, 3388
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Key Support Levels: 3353, 3338, 3330
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