Gold Prices Retreat from Highs as Traders Await Fed Decision

Gold prices have pulled back 0.8% to $2,575 per ounce as traders take profits ahead of the Federal Reserve's rate decision. The precious metal had surged to record highs above $2,600 last week on Fed rate cut expectations and geopolitical concerns. EUR/USD is trading steady near 1.0550, finding support from dollar weakness, while GBP/USD hovers around 1.3100 ahead of both Fed and Bank of England meetings this week. The US Dollar Index has declined to 100.50, its lowest level in two weeks, as markets position for monetary easing. Technical indicators suggest gold may find support at $2,560, with resistance at $2,590. The correlation between gold and major currency pairs remains strong, with dollar weakness typically supporting both gold and European currencies. Traders are cautious about taking large positions before the Fed announcement, leading to reduced volatility across forex and commodity markets.