Gold prices stagnate ahead of Fed meeting

Gold prices remained confined within a narrow range for the past few trading sessions after correcting last week as geopolitical concerns receded to a certain extent.

Additionally, traders became increasingly cautious ahead of the Federal Reserve meeting on Wednesday. Gold could remain under some pressure as the market is currently predicting only a single interest rate cut this year and expectations of high interest rates for longer strengthen.

While the Federal Reserve is expected to maintain its interest rates unchanged at this week’s meeting, hawkish comments from its president could weigh on gold.

However, geopolitical conditions could remain a source of volatility as any flare-up in tensions could drive gold prices to the upside again. At the same time, demand from central banks could continue to provide a floor for the market.