XAU/USD tumbles towards $1,940 on Fed hawkish skip – Crypto News – Crypto News
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XAU/USD could slide toward $,1680 on a daily close below $1,700 XAU/USD could slide toward $,1680 on a daily close below $1,700

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XAU/USD tumbles towards $1,940 on Fed hawkish skip – Crypto News

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  • The Federal Reserve keeps rates unchanged at 5.00-5.25%.
  • Dot plot shows a higher peak policy rate at 5.35% in September.
  • US Dollar rises across the board, Gold tumbles as US yields soar.

gold prices tumbled after the Federal Reserve kept interest rates unchanged for the first time after raising rates for ten consecutive meetings. XAU/USD dropped from $1,952 to the $1,940 area.

As mostly expected, the Fed kept the Fed funds target range at 5.00-5.25. The “skip” is seen as hawkish considering that the economic projections from the FOMC staff show the peak rate a bit higher at 5.35%.

With the fed signaling that more rate hikes are likely, the US Treasury bonds tumble. The 10-year yield jumped from 3.78% to 3.85% and the 2-year from 4.64% to 4.80%. The US Dollar Index recovered from daily losses, rising back to the 103.25 area.

XAU/USD lost more than $10 in a few seconds, hitting a fresh daily low at $1,939. Gold is under pressure, looking at the $1,940 support area. A break lower could trigger more losses.

Market participants now await Chair Powell’s press conference. Volatility is expected to remain elevated. If Gold recovers, resistance is seen at $1,955, followed by the daily high at $1,960.

Technical levels

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