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2026-09-16 13:18:11
[Gold Receives Short-Term Support Ahead of Fed Decision, But Bullish Momentum Remains Constrained by Multiple Factors] 1. During Wednesday's Asian trading session, gold rebounded slightly after a brief pullback, attracting some bargain hunters near the 50-day moving average. Spot gold rose as much as 1.1% to around $4341 per ounce. The dollar's pause in its upward momentum after hitting a two-week high also provided some support for gold prices. However, ahead of key central bank events, traders are generally reluctant to make aggressive directional bets, seemingly limiting gold's upside potential, which has currently retreated to around $4324 per ounce. 2. The Federal Reserve will announce its interest rate decision later today, with the market widely expecting a 25 basis point increase in the benchmark interest rate. Investors will focus on the Fed's updated economic projections and dot plot, as well as Chairman Warsh's remarks at the post-meeting press conference. This information will influence the short-term trend of the dollar and provide new directional guidance for gold, a non-interest-bearing asset. 3. Energy-driven inflation risks continue to support the prospect of further tightening by the Fed. Crude oil prices rose to their highest level since May 20 on Tuesday due to escalating concerns about supply disruptions in the Middle East. Meanwhile, a global bond sell-off continued, with the benchmark 10-year US Treasury yield breaking through 5%, the first time since 2023 and the highest level since 2007. Escalating tensions in the Middle East also supported the safe-haven dollar, potentially limiting gold price gains. Geopolitically, Saudi Arabia issued security alerts for several regions, including Mecca and Jeddah, following a week of attacks by Houthi rebels in Yemen. The Saudi-led coalition pledged a “resolute” response to Houthi missile and drone attacks, increasing the risk of further escalation of the regional conflict. Furthermore, the US Central Command stated that 103 commercial vessels had been diverted as part of a maritime trade blockade against Iran, supporting oil prices and benefiting the dollar.
