FX.co ★ XAU/USD, GOLD

XAUUSD 30-M Time Frame Update As traders positioned themselves ahead of significant central bank announcements, gold started the week cautiously but soon recovered. Expectations that the U.S. Federal Reserve may loosen policy more aggressively in the upcoming months continue to support the precious metal. The dollar has weakened, and Treasury yields have decreased due to the expectation of lower rates, which increases the allure of gold as a non-yielding asset. According to one commodities strategist, "Gold is still supported by the dual forces of declining yields and a softer dollar." "The tone for the fourth quarter will be greatly influenced by the Fed's next meeting." The demand for precious metals is nevertheless supported by broader geopolitical issues in addition to monetary policy. As tensions in the Middle East continue to rise, renewed strikes on Eastern European energy infrastructure have raised worries about supply interruptions and sanctions. Investors are keeping their exposure to gold and silver as insurance against unanticipated shocks, despite the fact that the overall risk mood in stocks has been robust. Traders are anticipating new policy direction to decide the next big move as central bank meetings are scheduled in the United States, Canada, the United Kingdom, and Japan this week. At $3,644, gold is trading barely above the trendline support that was drawn from the September lows. The 200-period EMA at $3,534 is still a deeper floor, but the 50-period EMA at $3,631 is serving as short-term support. The price has consistently halted at $3,658, which is a point of resistance. Consolidation is evident in recent candles, with buyers entering the market close to $3,639, strengthening the trendline. With a value of 53, the RSI indicates neutral momentum devoid of significant directional bias. While a decline below $3,626 raises the possibility of a more significant pullback toward $3,613, a closure over $3,658 might clear the way toward $3,674 and $3,688. To confirm the next move, traders are keeping an eye on volume.