Fed Decision Set to Spark Gold Price Volatility: Will XAUUSD Break Above $4,388?

The Federal Reserve's decision on September 16 could be crucial in determining gold's next move. The XAUUSD price has rallied from $4,300 to around $4,335-$4,345 as markets anticipate a 25-basis-point hike. However, the actual direction may not be set by this expected increase; instead, guidance from the Fed, the US dollar, and Treasury yields could play a significant role in determining whether gold breaks above $4,388 or rejects towards support at $4,355.

Traders are closely watching these factors as they aim to identify any potential liquidity sweeps above $4,355, rejections towards support, or breakouts above $4,388. The upcoming decision has the potential to impact not only gold prices but also broader market risk sentiment and potentially even the crypto market.