Gold Tests Key Support Level After Fed Rate Hike
The price of gold futures has been testing the VC PMI Buy 1 level at $4,303 following the recent Federal Reserve rate hike. The metal had fallen by $82.30 or 1.88% to trade near $4,305 on September 16, 2026. This drop took gold below both its daily and weekly moving averages.
According to the VC PMI framework, holding and reclaiming the Buy 1 level at $4,303 would favor a reversion towards $4,332, which is the weekly Buy 1 level, and then $4,358. However, if gold were to break below this level, it could expose the weekly Buy 2 level at $4,254 and daily Buy 2 near $4,218.
The Federal Reserve raised its policy target by 25 basis points to 3.75%-4.00% on September 16, citing elevated inflation and solid activity. Higher yields can increase the opportunity cost of holding gold, while dollar strength can pressure its price; inflation concerns and geopolitical uncertainty can also support demand.