Fed Pressure on Gold: Only Temporary?!

Gold prices held steady around US$4,270 per troy ounce after the Federal Reserve raised interest rates by 25 basis points to the 3.75%–4.00% range. Fed Chair Kevin Warsh emphasized that inflation remains too high, while the latest projections opened the door for further rate hikes before year-end. This hawkish stance strengthened the US dollar and boosted the appeal of interest-bearing assets, thereby weighing on gold.

Fundamentally, gold's price action will continue to be driven by expectations regarding Fed policy, the US dollar, and Treasury yields. The prospect of further rate hikes could limit gold's gains in the short term. However, US–Iran geopolitical tensions and concerns over global inflation may sustain demand for safe-haven assets and pave the way for a rebound should pressure from the dollar begin to ease. (asd)

Gold price at the time of this analysis: $4,284

- Buy if the price moves to $4,296

- Sell if the price moves to $4,286

Resistance 2: $4,318

Resistance 1: $4,308

Support 1: $4,272

Support 2: $4,262

Note: This article is analytical in nature and does not constitute definitive advice. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.

Source: Newsmaker.id