Gold rallies as traders fade overnight Fed-driven moves

Gold has recovered from overnight losses to trade 0.5% higher at $2,650/oz, as European traders fade the initial post-Fed volatility. The Federal Reserve's decision yesterday offered mixed signals, with hawkish dot plot projections balanced against dovish commentary, leaving markets without clear direction. The precious metal initially dropped to $2,635 following the FOMC meeting but has since reclaimed the $2,650 psychological level. Dollar strength has moderated, with DXY pulling back 0.2% from overnight highs, supporting gold's recovery. Technical indicators show immediate resistance at $2,660 (yesterday's pre-Fed high), while support holds at $2,635 (overnight low). The lack of consensus following the Fed meeting suggests continued range-bound trading, with traders awaiting Friday's PCE inflation data for clearer monetary policy signals. Gold's safe-haven appeal remains intact amid ongoing geopolitical tensions and uncertainty about the Fed's future rate trajectory.