Article by: ETO Markets

Gold prices are experiencing downward pressure as markets await the critical Federal Reserve policy decision. Strong US economic indicators, including better-than-expected November retail sales (+0.7%) and robust Services PMI data, have reinforced expectations of a less dovish Fed stance. However, persistent geopolitical tensions, including developments in the Russia-Ukraine conflict (notably the reported Moscow incident involving Igor Kirillov), ongoing Middle East instability, and concerns over potential trade war escalation, continue to provide underlying support for gold's safe-haven appeal. Market sentiment remains cautious ahead of the FOMC's updated economic projections and Chair Powell's commentary on the future rate-cut trajectory. 

Gold (XAU/USD) is consolidating near $… after retreating from its recent peak of $…. The price action shows a formation of lower highs on the daily timeframe, suggesting weakening bullish momentum. The 55-day Simple Moving Average around $… has become a significant technical barrier, while the 100-day SMA provides crucial support near $…. The recent price action exhibits increased volatility with larger daily ranges, indicating market uncertainty. The metal has formed a short-term support base above $…, though the overall structure suggests a potential continuation of the corrective phase if key support levels are breached.