FX.co ★ AB2 | XAU/USD (GOLD)

XAU/USD Early on Tuesday, as the Fed meeting begins, gold sees a little increase above $4,300. Due to the escalating Middle East crisis, rising oil prices, and hawkish Fed predictions, the US dollar is at weekly highs. With the RSI remaining below 50, gold is currently defending the crucial 50-day SMA, which is around $4,275.

an attempt to build on a weak rebound from six-week lows close to $4,250, gold is momentarily rising to $4,300 early on Tuesday. Traders are closely monitoring the escalating violence in the Middle East in anticipation of the two-day US Federal Reserve (Fed) monetary policy meeting later today.

is still at risk before the Fed meeting. Despite the most recent increase, gold is still susceptible to additional declines due to growing geopolitical tensions in the Gulf, fears about inflation brought on by rising oil prices, and hawkish wagers over the Fed's policy future. The Houthis, a terrorist group in Yemen supported by Iran, began a fresh assault on Saudi Arabia on Monday after Riyadh accused Iran-backed rebels in Iraq of attacking the kingdom's east-west pipeline. According to Reuters, Gulf Arab nations also postponed scheduled negotiations with Iran. The US dollar (USD) is still supported at weekly highs versus its main currency competitors because of growing worries that the US-Iran feud may escalate into a full-fledged regional conflict in the Middle East and the ensuing spike in oil prices. Therefore, Gold's recovery is still at risk. Additionally, the Greenback takes advantage of investors' skepticism regarding the quick advancement and use of artificial intelligence (AI), especially in light of requests by prominent industry executives to limit its growth.