Comex Gold prices reacted negative after the Fed decision. Prices off day’s high as the dollar inched higher to a sixth month high against its major counterparts. However, prices were able to recover slightly today.
Gold price remains under selling pressure as the Federal Reserve (Fed) held the benchmark policy rates at 5.5% The Fed’s decision to hold rates steady followed recent evidence that its 11 rate-hikes delivered so far are starting to turn the tide in the battle against inflation.
The Federal Reserve (Fed) held interest rates steady at the 5.25-5.50% range in yesterday’s meeting, which was in line with expectations of the market.
Prices will react volatile on the US weekly Jobless Claims, the Philly Fed, and Existing Home Sales data, scheduled to release later today. Adding to this, the Bank of England policy decision will add some volatility.
Further, Bank of Japan policy on Friday will give direction to the yellow metals.
Technical Outlook
Gold prices retreated from the high $1947.57 and settled at $1930.78 yesterday. Today, prices were able to recover slightly from the low of $1924.26 and traded at $1927.75.
On the above chart, Prices found support of 20 DMA. Also, prices are also trading above 38.2% Fibonacci Retracement level. In near future $1922.00 will act as a crucial support and if prices hold it then there will be possibility for the short-term recovery. Prices may retest immediate resistance $1933.50-$1939.00.
Alternatively, on the downside crucial support is seen at $1922.00 a break below prices may extend fall and could test $1915.15-$1910.25.
Overall trend looking volatile amid world major central bank policy decisions and statements.