Gold Rebounds Above $4,300 as Market Awaits Next Fed Move

Gold prices rebounded above $4,300 after the Federal Reserve's interest rate hike on September 21st. However, hawkish guidance from Fed members continues to weigh on gold prices, keeping the focus on the $4,316 resistance level.

The market is pricing in a 50% chance of another rate hike in October, which could further pressure gold prices. This hawkish sentiment was reflected in comments from Fed officials, with most expecting additional rate increases by year-end.

Although lower oil prices have provided some relief for gold, reducing inflationary pressures that could lead to tighter monetary policy, the near-term outlook remains bearish due to expectations of higher interest rates.

From a long-term perspective, fiscal risks and geopolitical uncertainties continue to support demand for gold. However, at present, these factors are being overwhelmed by expectations of higher interest rates.