Before the Federal Open Market Committee (FOMC) meeting, gold showed buying interest. As expected, the FOMC decided to cut interest rates by 0.25%. Right after the decision, the US dollar fell, and gold rose to a record high of 3707.
However, the dot chart showed a forecast of only two more rate cuts this year. Chair Powell also said the cut was for risk management and there was no need to move quickly on interest rates. This showed a stronger stance on interest rates than the market expected, so gold started to fall.
Since late August, gold had kept rising from around 3300 without much correction. This meeting gave the market a reason to pause, and short-term selling is likely to start.
Gold–Dollar forecast range: 3,630 – 3,685 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.