Gold has rebounded from the key $4,000 support zone and is targeting the $4,100 resistance level, but the October 28 Federal Reserve decision is the main catalyst that could determine the next directional move for precious metals and risk assets. At press time, XAU/USD traded at $4,019.805, above the latest weekly low of $3,978.180 and 0.60% higher on the displayed candle.
According to analyst Cheds Trading, gold is “right on the cusp of” support, with price action testing a horizontal support level after a series of lower highs. Bollinger Bands are expanding during the decline, indicating elevated volatility. The key levels to watch are $3,978 as immediate downside reference, $4,000 as psychological barrier, and $4,030.065 as the recent high. A weekly close below $3,978 would weaken the bullish support argument, while a push above $4,030 could encourage short-term buyers but would not confirm a full trend reversal.
The FOMC will hold its next meeting on October 27–28 and announce its policy decision on October 28. A hawkish message could strengthen the dollar and push Treasury yields higher, raising the opportunity cost of holding non-yielding assets such as gold. A more dovish tone could support gold, silver, and potentially Bitcoin by easing financial conditions, though crypto prices remain sensitive to positioning and overall risk appetite.
