Gold Prices Fluctuate Amid Fed Interest Rate Hike
The gold market has experienced significant fluctuations in the past week, following the US Federal Reserve's (Fed) decision to raise interest rates by 25 basis points. The Fed's action pushed spot gold prices down to the 4,260-4,280 USD/ounce range, but they quickly recovered as oil prices and US Treasury bond yields cooled down.
By the end of the week, gold returned to around the 4,380 USD/ounce range, ending a three-week consecutive decline. This development suggests that while monetary policy is still exerting pressure on the market, it is no longer the only determining factor for gold prices.
Technically, the 4,381-4,400 USD zone is an important area of resistance for gold. If the precious metal can decisively surpass this range and maintain its price above 4,400 USD, market sentiment may improve, and a target towards 4,430-4,450 USD, and further to 4,500 USD/ounce could be set.
However, if gold cannot exceed 4,400 USD and bond or USD yields increase again, profit-taking pressure may appear. The 4,370 USD zone is near support to be monitored; if this zone is lost, the market may return to testing 4,300 USD.