FX.co ★ XAU/USD (GOLD)

XAU/USD Early on Thursday, new offers over $4,300 will test gold's comeback from six-week lows. Amid US diplomatic efforts, the US dollar consolidates a hawkish Fed-inspired surge to seven-week highs. The daily RSI is still negative, and gold closed Wednesday below the crucial 50-day SMA at $4,280.After the Fed event, gold is still susceptible. In a unanimous vote on Wednesday, the Fed increased its benchmark interest rates by 25 basis points (bps) to 3.75%–4%, as was generally anticipated. Another rate rise was scheduled for this year in the Fed's Summary of Economic Projections (SEP), also known as the "Dot Plot," which also suggested a hazy prognosis for the following year. Four members still anticipate rate reduction for 2027, while ten to fourteen authorities see rates staying the same. Furthermore, Fed Chair Kevin Warsh stressed that "the action will support a timelier return to its 2% inflation goal" at his news conference following the monetary policy meeting, indirectly implying that the disinflation path is still in place. The market's perception of the Fed's future course on rates is greatly impacted by the announcement, as traders process the overnight central bank event and halt the US dollar's (USD) general climb to seven-week highs amid a decline in US Treasury bond yields from multi-year highs. The overnight decline in oil prices, which slightly allays concerns about inflation, also provides some support for gold. Following news that Saudi Arabia is providing additional crude cargoes through Oman, easing concerns about supply interruptions, oil prices plummeted on Wednesday.