Gold prices are ticking upwards, buoyed by the FOMC statement which plots a resumption of rate hikes in 2023 in a move that is more dovish than the markets expected.
The FOMC Chair is now delivering comments on the decision, saying that the board has “laid out a clear guidance on liftoff,” and also saying that the state of the US economy in 2-3 years was “highly uncertain”.
Powell also says that the employment and inflation goals the FOMC needed to use to effect a rate hike were still a long way off and that the Fed needed to see data to suggest reasons for action.
Technical Outlook for Gold
Gold price on the day has soared 1.2%, and this has led to an intraday violation of the 1741.01 resistance level. Confirmation of the violation of this level could bring in 1763.30 as the new upside barrier, with 1789.49 and 1815.20 coming into the picture as well.
On the flip side, sellers may see the FOMC decision as an opportunity to sell on rallies to any of the aforementioned resistance levels. This leaves open the potential for a resumption of the slide towards the 1719.13 support, with 1699.43 and 1680.59 appearing as additional targets to the downside.
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Gold Price (XAU/USD) Daily Chart
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