USD under pressure ahead of Fed & BoC decisions, Gold surges to $5311

Gold rallied 1.9% to $5311 before paring gains to $5275, while USD Index showed weakness following Tuesday's sharp decline. Markets are positioning ahead of two pivotal central bank decisions today, with the Bank of Canada announcement at 9:45 am ET followed by the Federal Reserve. S&P 500 futures gained 0.2%, suggesting risk-on sentiment. The dollar's recent weakness reflects market uncertainty about Fed policy direction amid political pressures. Gold's surge indicates heightened safe-haven demand and dollar hedging ahead of the FOMC meeting. Technical resistance for gold sits at the $5311 intraday high, with support at $5250. USD Index faces resistance at 106.50 and support at 105.80. Traders should prepare for significant volatility across major pairs as central bank decisions could reshape monetary policy expectations and drive substantial currency realignments.