Gold Prices Wobble Ahead of Fed Meeting on Hawkish Rate Cut Expectations

Gold prices are showing signs of weakness as markets await the upcoming Federal Reserve meeting. The XAU/USD pair is struggling to hold gains amid a stronger US dollar and rising bond yields, trading near key support levels.

The Fed's interest rate decision later this month will be a major driver of gold price direction in the short term. Markets are pricing in a high probability of a rate cut, but any hawkish surprise from the central bank could push XAU/USD lower.

A break below the key support level near $2,300-$2,320 could accelerate selling and lead to a deeper correction toward $2,250. The Relative Strength Index (RSI) has dipped below 50, indicating bearish momentum in the short term.