As you can see from the chart, when the Fed decision was approved in the early hours, it directly triggered a sell-off. Gold price quickly plunged to the 4235 low point, then a short-term oversold rebound followed. Now it is trading around 4306, consolidating.
This Fed meeting was overall hawkish. After the rate hike was confirmed, the market showed panic selling, pushing prices to new lows. Then a large number of short sellers took profit and exited, leading to a wave of corrective rebound. This is a pullback after a big drop, and we cannot yet conclude that a strong reversal is underway.
Resistance levels: the first resistance is 4338–4360; the strong resistance is 4400. Only if price holds above 4400 will the short-side setup be broken.
Support levels: short-term support is 4270, and the key low is 4235. Once 4235 is broken again, the downward trend will likely continue.
Today is most likely to see range-bound consolidation and recovery. If the rebound cannot push through the 4360 resistance, it may face renewed pressure and retest the lower levels;
Only if price holds above 4360 will the bulls gain further momentum to test the 4400 mark.
$XAU
This Fed meeting was overall hawkish. After the rate hike was confirmed, the market showed panic selling, pushing prices to new lows. Then a large number of short sellers took profit and exited, leading to a wave of corrective rebound. This is a pullback after a big drop, and we cannot yet conclude that a strong reversal is underway.
Resistance levels: the first resistance is 4338–4360; the strong resistance is 4400. Only if price holds above 4400 will the short-side setup be broken.
Support levels: short-term support is 4270, and the key low is 4235. Once 4235 is broken again, the downward trend will likely continue.
Today is most likely to see range-bound consolidation and recovery. If the rebound cannot push through the 4360 resistance, it may face renewed pressure and retest the lower levels;
Only if price holds above 4360 will the bulls gain further momentum to test the 4400 mark.
$XAU
