Gold edges higher ahead of Fed decision; upside potential seems limited

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Gold edges higher ahead of Fed decision; upside potential seems limited
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Gold price (XAU/USD) builds on the overnight bounce from the $2,633 area, or over a one-week low and attracts some buyers during the Asian session on Wednesday.

Gold price moves further away from over a one-week low touched the previous day. Bets for a less dovish Fed , elevated US bond yields and a bullish USD should cap gains. Traders keenly await the crucial FOMC decision before placing fresh directional bets. Gold price builds on the overnight bounce from the $2,633 area, or over a one-week low and attracts some buyers during the Asian session on Wednesday.

Meanwhile, investors will closely scrutinize the updated economic projections and Fed Chair Jerome Powell's remarks for cues about the future rate-cut path, which will drive the US Dollar demand. Gold price needs to surpass the $2,664-2,664 strong barrier for bulls to seize short-term control From a technical perspective, any subsequent move up might face a hurdle near the weekly top, around the $2,664-2,666 region touched on Monday, ahead of the $2,677 area.

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