Gold edges lower to near $4,350 on Fed hawkish stance, Middle East tensions - Mitrade

AI desk brief

Gold edged lower to around $4,365/oz as hawkish Fed remarks and expectations for another October hike outweighed safe-haven support from escalating Middle East tensions. CME FedWatch implied a 56.5% chance of another 25 bp increase, while OCBC said elevated yields and a firmer USD may keep capping gold near term.

Technically, XAU/USD remains above the 100-day SMA at $4,320, preserving a constructive medium-term structure, but upside is capped near the Bollinger middle band around $4,410. A close above that level would expose $4,615, while a break below $4,320 would shift focus toward $4,200.