Gold Trapped Below Key Resistance as Fed Hike Looms

Gold prices remain steady near $4,380 an ounce despite expectations of another Federal Reserve rate hike before year-end. The metal has recovered from last week's six-week low but remains below the key resistance zone of $4,400.

The Fed raised its target range by 25 basis points to 3.75%-4% last week and signaled at least one additional increase in 2026. This creates an awkward backdrop for gold as higher interest rates increase the opportunity cost of holding a non-income paying asset.

However, long-term yields have retreated after briefly breaking above 5%, reducing some pressure on gold. Energy markets are also becoming more supportive with Brent crude falling sharply from last week's highs.