Gold price oscillates in the $2030 - $2050 range following the Fed's decision to hold interest rates steady.
Fed officials voted unanimously and emphasized the need to see inflation lowering toward 2%.
Investors now turn to Fed Chairman Jerome Powell for further insights, with US Treasury yields and the Dollar Index responding to the latest Fed update.
Gold price trims earlier gains and retreats after the US Federal Reserve decided to keep rates unchanged while pushing back against speculation of rate cuts. At the time of writing, XAU/USD trades volatile within the $2030 - $2050 area as market participants await Fed Chairman Jerome Powell’s decision.
XAU/USD trades volatile following Fed’s decision
In its monetary policy meeting, Fed officials voted unanimously to keep rates unchanged. They noted that it would be appropriate to reduce rates until there is greater confidence that inflation is sustainably moving toward its 2% goal. The Fed added that risks of achieving the Fed dual mandate are moving into better balance and emphasized that the committee will remain “highly attentive” to inflation risks.
Regarding the reduction of the balance sheet, it would remain as previously described while tightening restrictions on all Fed staff with access to confidential FOMC information.
After the data, the US 10-year Treasury note yield spiked to 4% before retreating somewhat towards 3.97%. At the same time, the US Dollar Index (DXY) aimed toward 103.50 before getting back to 103.35
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