Gold (XAU/USD) started the week with a bullish gap, opening above key levels as investors positioned ahead of the Federal Open Market Committee (FOMC) meeting beginning Tuesday, according to FX Street. Despite the strong start, the precious metal struggled to maintain momentum above the $4,100 mark, indicating cautious market sentiment.
The upcoming FOMC meeting is expected to be a major driver for gold prices as traders await signals on U.S. monetary policy. Uncertainty around interest rates typically increases demand for safe-haven assets like gold, but the current price action shows some hesitation to break decisively higher.
For Japanese investors, who are closely watching global monetary developments and their impact on FX and commodity markets, gold’s price reaction ahead of the FOMC meeting offers important insights into risk appetite and potential market volatility in the near term.