XAU/USD retreats from $3,700 record as traders await Fed decision

XAU/USD has pulled back to $3,665 after touching a record high of $3,700 in overnight trading, representing a modest correction from peak levels. Despite today's profit-taking, gold maintains impressive gains of 0.6% weekly and over 6% monthly, defying typical September seasonality patterns. The retracement comes as traders position cautiously ahead of the Federal Reserve's monetary policy decision later today, with markets pricing in potential rate cut scenarios. Technical analysis shows gold preserving its bullish momentum on higher timeframes, with immediate support forming around $3,650 and the psychological $3,700 level now acting as near-term resistance. The precious metal's strength reflects ongoing safe-haven demand amid global economic uncertainties and expectations for a more dovish Fed stance. Traders should monitor the Fed's forward guidance closely, as any hints of accelerated easing could propel gold toward new record territories above $3,700.