Gold tests $4,300 resistance as Fed decision looms for XAU/USD

Gold's rebound from 2026 lows faces a critical test at $4,300 resistance ahead of this week's Federal Reserve decision.

Gold traded near $4,300 an ounce, up from 2026 yearly lows, as traders awaited the Federal Reserve's policy decision this week.

COMEX gold futures held above $4,300 in Tuesday trading, with the metal recovering from its lowest level of the year, according to exchange data.

The rebound has brought XAU/USD to its first major resistance zone after the selloff that pushed it to yearly lows. The metal briefly dipped below $4,200 earlier this month as the dollar strengthened on hawkish Fed commentary and uncertainty around a potential US-Iran peace deal, before rebounding sharply.

A dovish Fed outcome could push gold toward higher resistance levels. A hawkish surprise risks reversing the bounce and sending prices back toward the yearly low. The decision represents the clearest near-term catalyst for gold after weeks of uncertainty driven by shifting rate expectations and geopolitical developments.

$4,300 as the Inflection Point

The $4,300 level has acted as both support and resistance in recent sessions. Gold's ability to hold above this level into the Fed decision will show whether buyers are committed to the recovery. A sustained break above $4,300 would mark the first time gold has held gains above that threshold since the selloff to yearly lows.

Fed Decision as Catalyst

The Federal Reserve's rate announcement this week is the most significant near-term driver for gold prices. Lower rates reduce the opportunity cost of holding non-yielding assets, while a hawkish stance would strengthen the dollar and pressure the metal. Markets are pricing a range of outcomes, leaving gold exposed to a sharp move in either direction.

This article is for informational purposes only and does not constitute investment advice.