Gold Price Stuck in Bearish Bias Ahead of Fed Decision
The gold price has retained its bearish bias as of mid-March 2025 due to several macroeconomic factors. The precious metal is under pressure from a strengthening U.S. dollar and rising bond yields, which are diminishing the appeal of non-yielding assets like gold.
The technical outlook for XAU/USD remains weak, with sellers maintaining control below the 50-day moving average. A series of lower highs since late February suggests that momentum has shifted in favor of bears, with immediate support lying at $2,080 per ounce.
Market participants are closely watching the Federal Reserve's upcoming decision on interest rates and its potential impact on gold prices. The current market pricing reflects only a 30% probability of a rate cut by June 2025, down from over 60% at the start of the year.