XAU/USD bears lurking at key resistance, eyes on $1,795???

''We cannot understand why the markets continue to fight the Fed. With the exception of some communications missteps here and there, Powell and company have been resolute about the need to take rates higher for longer. Although the media embargo has been lifted, there are no Fed speakers scheduled this week.'' In this regard, rising interest rates increase the opportunity cost of holding bullion since it pays no interest and synchronised rate hikes have weighed on gold in 2022.

''Although we expect the US fed funds rate to peak at 5%, a pause in rate hiking should turn market sentiment in favour of gold,'' analysts at ANZ Bank explained. ''This comes as we approach the end of US dollar dominance, and a depreciation in the currency would add further support to investor demand. With the Fed suggesting rates will remain high through 2023, the risk of weak economic growth next year. Gold prices tend to come under pressure ahead of recessions, but then outperform other markets (such as equities) during them.''