The U.S. dollar and government bond yields continue to experience volatility, as investors anticipate the release of critical information following the upcoming Federal Reserve meeting.

The FedWatch tool indicates that the market still expects a 25-basis-point rate cut by the Fed on Wednesday, which remains a supportive factor for gold, along with geopolitical risks that may escalate.

However, investors have scaled back their expectations that the Federal Reserve will significantly lower interest rates in 2025 and may delay rate cuts in January. This poses a challenge to gold price growth. Nevertheless, market participants are closely watching the release of quarterly economic data and remarks from Jerome Powell.

Source: Fxstreet