On Wednesday, the price of XAU/USD rose to $2,440 and maintained its position following the Federal Reserve’s decision to keep interest rates unchanged at 5.25%-5.5%. This marks the eighth consecutive meeting without any rate adjustments, with investors eagerly awaiting Federal Reserve Chair Jerome Powell’s press conference for further insights.
Despite no major language changes in the statement, the Federal Reserve still considers inflation to be somewhat elevated. The lack of clear guidance for the September meeting could be seen as hawkish, indicating that the bank remains data-dependent.
XAU/USD Technical Analysis
The technical analysis shows a positive outlook, with the price above the 20,100 and 200-day Simple Moving Averages (SMA). Indicators also suggest steady buying pressure. Investors should keep an eye on the $2,400 – $2,490 range for potential movements in the next sessions.
XAU/USD Daily Chart
Analysis and Breakdown
The Federal Reserve’s decision to keep interest rates steady has implications for investors. With no rate adjustments, the market remains stable, but the lack of clear guidance for the future could lead to uncertainty. The positive technical outlook for XAU/USD suggests a potential for movement within a specific price range. Investors should stay informed and monitor market developments to make informed decisions about their finances.