Spot gold bulls claim victory as it reaches its upside target. A neutral view is now maintained
The price of precious yellow metals surged, surpassing the $2,184-88 target and breaking above the $2,200 threshold.
This uptrend was supported by a weaker U.S. Dollar (U.S. DXY), the U.S. FOMC rate decision, and Powell's dovish comments.
At the conclusion of Wednesday's Fed meeting, the central bank, as widely expected, kept benchmark interest rates unchanged at 5.25% to 5.50%.
Before the meeting, market participants' nervousness eased when the Fed's survey of policymakers indicated that the median still expects three interest rate cuts in 2024, with the likelihood of the first move by June.
The Fed has one more meeting scheduled before then, on April 30-May 1.
Even after Chair Jerome Powell's remarks at the press conference, the central bank's decision to keep borrowing costs unchanged indicates policymakers are undeterred by the robust labour market or recent higher-than-expected inflation.
Chair Powell noted that high inflation readings in January and February justified the Fed's cautious approach, indicating that they were right to wait until they were more confident.
He also emphasized that strong hiring alone wouldn't delay rate cuts and highlighted an easing overall price growth.
Based on technical analysis, the Relative Strength Index (RSI) 3-day 'lookback' indicator is positive.
The Moving Average Convergence Divergence (MACD) is also positive, and the ADX indicator supports a weak bull trend.
Traders should exercise caution given the high volatility. With the $2,184-88 exceeded, a neutral outlook holds.
Daily Chart Spot Gold
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