Gold erases its weekly gains ahead of FOMC policy decision

Gold prices dipped to $3360 in the early Asian session on Wednesday, snapping a two-day rally as news of upcoming US-China trade talks weighed on demand for safe-haven asset. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to meet their Chinese counterparts in Switzerland on Saturday to discuss trade and economic issues. This will be the first direct talks since the US imposed tariffs on China, marking a potential step toward easing tensions between the world’s two largest economies.
Investors are closely watching the Federal Reserve's policy decision later today, along with remarks from Fed Chair Powell, for signals on the future direction of interest rates. While there is mounting political pressure to ease monetary policy, the Fed is widely expected to hold rates steady. 

XAU/USD TECHNICAL OVERVIEW 

Technical Structure: Gold’s price action presents a mixed technical picture across different timeframes. On the daily chart, a Marubozu candle signals strong bullish momentum, reflecting sustained buying pressure. However, the 4-hour chart shows a Bearish Engulfing pattern, indicating potential short-term weakness. Meanwhile, the 1-hour chart reveals a Bear Flag formation.

Intraday Trend/ Intraday Strategy: The intraday bias remains bullish however the technical setup favours the approach of Buying on Supports and Selling on Resistance

Weekly Trend: Bullish 

Major Support: 3370, 3360, 3350

Major Resistance: 3397, 3415, 3438