Gold Prices Hold Steady at $4,050 Ahead of Fed Decision

Gold prices held steady at around $4,050 per ounce on Tuesday, July 28, as investors awaited the Federal Reserve's policy decision. A stronger U.S. dollar and elevated real yields put downward pressure on bullion.

The technical picture for gold remains fragile, but support around $4,000 continues to prevent a deeper decline. The four-hour chart showed gold near $4,049.58, below its 50-period exponential moving average at approximately $4,065.78, which now acts as the first resistance level.

Momentum is weak, with the relative strength index standing near 44.8, below both the neutral 50 mark and its signal line. However, it remains above oversold territory, suggesting gold could still stabilize without suffering an immediate breakdown.

The Fed's decision on interest rates will be crucial in determining the next move for gold prices. A rate increase or hawkish message could lift the dollar and real yields, raising the risk of a gold break below $4,000, while an unchanged decision with softer guidance could help bullion reclaim $4,066 and challenge $4,100.