For XAU/USD on June 15th, gold prices hover around $1,960 ahead of the Federal Reserve meeting. The precious metal has tested and rebounded at support zones around $1,935. Fed Chair Powell’s potential hawkish outlook cannot be disregarded as he seeks maximum flexibility for future meetings.

On the fundamental side, the Federal Reserve is expected to keep interest rates unchanged, but there may be a warning that rates could rise further in July due to the central bank’s ongoing struggle with inflation. The unanimous vote on this decision suggests policymakers are aligned in their strategy to address inflation and achieve the long-term goal of 2.0% inflation. While headline CPI (Consumer Price Index) has improved compared to last year, currently standing at 4.0% year-over-year, it still remains double the target, emphasizing the persistent nature of inflation as reflected in the core gauge.