XAU/USD consolidates near $2,650 as Fed rate expectations stabilize

Gold prices have stabilized around $2,650 per ounce following a period of volatility as markets aligned with the Federal Reserve's baseline projection of two rate cuts in 2025. The precious metal recovered from recent lows after the repricing of interest rate expectations eased downward pressure on non-yielding assets. Market participants are now positioning for the next directional move, with technical indicators suggesting a consolidation phase. The 50-day moving average at $2,635 provides immediate support, while resistance emerges at $2,675, coinciding with the previous week's high. A breakout above this level could signal renewed bullish momentum toward $2,700. The dollar's relative strength and upcoming US economic data releases, particularly inflation metrics, will be crucial in determining gold's near-term trajectory. Traders should monitor real yields and dollar movements for potential catalysts.