Before the FOMC meeting, gold prices in the Tokyo market fell as traders adjusted their positions.
As expected, the FOMC decided to keep interest rates the same, with all members agreeing. However, the statement removed comments about inflation improving. Because of this, the market saw the decision as hawkish (meaning the Federal Reserve is being strict about inflation).
Chairman Powell said there is no need to rush in changing policy. When asked about former President Trump’s comments on rate cuts, Powell said he has not spoken with Trump and had no comment on his statements. This made interest rates go up, which caused gold prices to fall.
Also, all three major U.S. stock indexes dropped, which limited gold’s price from rising.
However, because of uncertainty under the Trump administration, some investors may still buy gold as a safe asset, so the price may not fall too much.
Expected Gold/Dollar Range: 2775 – 2735 (23.6%)
Note: The above is not a guarantee of profit. Make your own decisions when trading.