- Gold price currently trades around $1,928 after seeing a rejection from the $1,948 mark.
- The Federal Reserve (Fed) held interest rates steady at the 5.25-5.50% range on Wednesday.
- Fed is expected to hike the rate one more time this year.
- The US weekly Jobless Claims, the Philly Fed, and Existing Home Sales will be due on Thursday.
Gold price (XAU/USD) experiences a partial recovery from its recent decline of around $1,928 during the Asian trading hours on Thursday. Gold price remains under selling pressure as the Federal Reserve (Fed) held the benchmark policy rates at 5.5% while delivering the hawkish remarks.
The Federal Reserve (Fed) held interest rates steady at the 5.25-5.50% range during its September meeting, as widely predicted in the market. Officials are more optimistic that they might curb inflation without damaging the economy or causing significant job losses. Fed Chairman Jerome Powell reaffirmed the Fed's commitment to achieving 2% inflation in a press conference. Powel added that the Fed is ready to raise rates if necessary.
According to the Fed's most recent quarterly predictions, the benchmark overnight interest rate may be hiked one more time this year to a peak range of 5.50% to 5.75%, and rates could be significantly tighter through 2024 than previously anticipated. Additionally, the Fed updated its Summary of Projections (SEP), indicating that Fed officials expect interest rates to reach 5.1% by the end of 2024 (from 4.6% prior). It’s worth noting that rising interest rates raise the opportunity cost of investing in non-yielding assets, implying a negative outlook for precious metals.
Gold traders will keep an eye on the US weekly Jobless Claims, the Philly Fed, and Existing Home Sales due later on Thursday. On Friday, the preliminary US S&P Global PMI for September will be released. These figures could provide a clear direction for gold price.
XAU/USD technical outlook
On the four-hour chart, gold price saw a rejection from the $1,948 mark following the Fed interest rate decision. The precious metal has remained well supported above the 100-hour Exponential Moving Average (EMA) at $1924.
Meanwhile, the Relative Strength Index (RSI) is located in the 40-60 zone, indicating a non-directional movement for gold price for the time being.
Resistance level: $1,950, $1,965 and $1,982
Support level: $1,924, $1,915 and $1,900
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.