Gold price remains on the back foot after the Federal Reserve (Fed) kept interest rates unchanged. XAU/USD trades at $3,394, down over 1%, as traders brace for Fed Chair Jerome Powell's press conference.
XAU/USD down over 1% to $3,394 as traders await Powell's press conference following cautious Fed tone
The Federal Reserve held rates at the 4.25%-4.50% range unanimously, as expected, and mentioned that uncertainty about the economic outlook has increased further, adding that the risks of higher unemployment and inflation have risen.
Fed officials added that the economy remains expanding at a solid pace, acknowledging that the labor market remains solid, but inflation risks are seen as somewhat elevated.
Gold prices slightly jumped past $3,390 but failed to get to $3,400. However, the main catalyst could be the Fed Chair Jerome Powell's tone at the press conference. If he stays as hawkish as he has previously been, further XAU/USD downside is expected, which could put into play a test of the $3,350 figure ahead of the $3,300 mark.
Conversely, a dovish stance could pave the way for Gold buyers to test $3,450 and possibly the record high of $3,500.
Source: Fxstreet
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