Gold Holds Above $4,000 Ahead of FOMC, but Bears Still Have the Upper Hand

Gold extended its rebound during Wednesday's European session, climbing back toward the $4,050 area as the US dollar edged lower. However, with the Federal Reserve's policy decision just hours away, traders remain reluctant to chase prices higher.

The precious metal is still trading below its key short- and medium-term moving averages, suggesting that the broader recovery lacks strong momentum. Unless gold breaks decisively above the $4,070 resistance zone, the near-term trend is likely to remain tilted to the downside.

Momentum indicators also point to a cautious outlook. The RSI remains below the neutral 50 level, indicating that sellers still have the upper hand, although bearish momentum has started to ease following the recent pullback.

From a technical perspective, $4,070 is the first level to watch, with a break above that area potentially opening the door toward $4,200. On the downside, the psychological $4,000 level remains the key support. A sustained move below it could expose gold to another round of selling pressure and extend the recent correction.

For now, attention is firmly on the Fed. Any signal that policymakers are moving closer to rate cuts could help gold build on its rebound, while a more hawkish message may quickly push prices back toward recent lows.