Gold Prices Rebound Above $4300 After Fed Rate Hike

The Federal Reserve's latest rate hike has led to a sharp reversal in gold prices. On Thursday, September 17, spot gold initially fell to around US$4,240.10 after the Fed raised interest rates by 25 basis points to 3.75%, 4.00%, but later rebounded above US$4,300.

The market is now questioning whether this rebound will continue or if gold will face a deeper correction towards US$4,150. For Australian traders, key levels to monitor are US$4,300 support, US$4,340-4,370 resistance, and US$4,150 as a potential downside target.

The Fed's decision has emphasized the importance of inflation and the possibility of further tightening, which could continue to weigh on gold. However, if investors believe that inflation risks or fiscal concerns could undermine confidence in traditional assets, demand for gold may remain supported.