Gold prices have declined 1.2% to $2,320 per ounce following the Federal Reserve's decision to maintain interest rates while warning about potential inflationary pressures from tariffs. The Fed's cautious stance on rate cuts, with only 47 basis points priced in by year-end, has strengthened the dollar and increased the opportunity cost of holding non-yielding gold. Fed officials highlighted concerns that trade tensions could reignite inflation, potentially delaying any monetary policy easing. Technical analysis shows gold breaking below the crucial $2,340 support level, with the next target at $2,300. The relative strength index (RSI) has dropped to 42, suggesting bearish momentum but not yet oversold conditions. Traders are closely watching US trade policy developments and upcoming CPI data, which could either accelerate gold's decline toward $2,280 or trigger a relief rally back above $2,350.
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