Gold Rebounds Above $4,300 Amid Hawkish Guidance and Strong Dollar
Gold prices rebounded above $4,300 after the Federal Reserve's (Fed) rate hike last week, but the metal remains under pressure from hawkish guidance and a strengthening US dollar. The Fed Funds Target range was increased to 3.75%-4.00%, with a majority of FOMC members agreeing that further tightening is necessary.
The recent decline in oil prices has provided some relief for gold, as it eases inflation pressure on the Fed. However, the outlook for future hikes remains uncertain, with markets assigning a 50% probability to the Fed Funds rate hitting the 4.25%-4.50% range in October.
Gold's technical analysis suggests that while bullish signs are present, the broader trend remains bearish due to the metal trading below its bearish trendline and moving averages. A clear close above $4,316 would be required to confirm more upside, with potential targets at $4,347 and $4,366.