Gold rebounds after falling below $1620 ahead of Fed meeting

Gold prices rebounded to $1636.72 per ounce after briefly falling to below $1620. Broad US Dollar strength ahead of the Federal Reserve meeting keeps the precious metals segment under pressure.

Gold price slid for the second consecutive day as the US Dollar advances, ahead of the Federal Reserve Open Market Committee (FOMC) meeting, which is widely expected to deliver the last jumbo-size rate hike of the US central bank, amidst growing speculation for a Fed pivot, while recession fears increased. At the time of writing, the XAU/USD is trading at $1637 a troy ounce, down by 0.39%.

Global equities remain under pressure. Inflation in the Eurozone reached a record high of 10.7% amidst an ongoing economic slowdown in the block, which weakened the EUR, and underpinned the USD. The dollar got bolstered by US Treasury yields rising, while the 3-month/10-year yield curve spread briefly inverted during the last week.