Fed Keeps Rates Steady Amid Hawkish Undertones

The Federal Reserve's decision to keep interest rates steady at 3.50%, 3.75% was in line with market expectations, but a slightly hawkish tone was evident as three FOMC members voted for a rate hike.

This suggests that concerns over inflation remain present within the Fed, despite the decision to leave rates unchanged. The latest FOMC statement showed little change compared to the previous meeting, and market focus has now shifted toward future policy expectations.

The US Dollar Index weakened following the announcement, trading below its 20-day simple moving average (SMA 20). However, the broader trend remains constructive as price holds above the SMA 50. A daily close above the SMA 20 could lead to a reclaim of the 101.980 resistance area.

Gold reacted positively to the FOMC outcome, allowing price to move back above the SMA 20. A sustained daily close above this level would strengthen the case for a recovery toward the 4,200-4,215 resistance zone. However, if gold fails to maintain its position above the SMA 20 and closes below it on a daily basis, selling pressure could return.