Gold Forecast: XAU/USD tests critical 38.2% Fibo support as Fed meeting looms | FXStreet

Gold Forecast: XAU/USD Tests Critical 38.2% Fibo Support

Gold is reverting a part of the previous decline, challenging the $1,900 - $2,000 mark as safe-haven flows return heading into the two-day US Federal Reserve (Fed) monetary policy meeting.

Markets seem to have turned risk-averse, biding time before the Fed policy announcements on Wednesday. Further, nervousness sets in as key US tech titans are due to release their earnings reports later this week.

The US Dollar (USD) is languishing in weekly lows against its six major currency rivals, as traders look to reposition amid the US-China trade deal optimism and ahead of the Fed event risk.

These factors offer fresh support to Gold, helping the bright metal stage a comeback after having fallen for two trading days in a row.

Gold tumbled over 3% on Monday, as markets ignored the traditional safe haven in search of higher returns on renewed hopes that the US and China will reach a trade deal when US President Donald Trump and his Chinese counterpart Xi Jinping meet on Thursday in South Korea.

Author's summary: Gold tests critical support ahead of Fed meeting.

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FXStreet FXStreet — 2025-10-28

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