Breaking: Gold hits $3,680, eyes $3,700 as Fed decision looms

• XAU/USD trades at $3,680, with 95% probability of 25 bps Fed cut, slim 5% odds for 50 bps move.
• Technicals point to $3,700 test; dovish Fed stance could unlock upside toward $3,750 and $3,800 targets.
• Hawkish surprise or cautious guidance may prompt profit-taking after sharp rally to record highs.

Gold Price rallies past the previous record high of $3,674, hits $3,681 poised to challenge the $3,700 in the near term, as traders brace for the Federal Reserve's monetary policy decision.

Bullion extends rally beyond previous record with traders pricing near-certain Fed rate cut at September meeting

On Tuesday, the US central bank is expected to reduce interest rates by 25 basis points as expected by market participants, as depicted by the CME FedWatch Tool. Odds are at 95%, and for a 50 bps is slim at 5%,

Gold Price Forecast: Technical outlook

Gold price is poised to challenge the $3,700 in the near term, though it would depend on the outcome of the Fed's decision. A dovish cut could push prices past the abovementioned figure and clear the path towards $3,750 and $3,800. Otherwise, a "hawkish" could lead traders to book profits and push Gold prices lower.