📊 Weekly recap: How did the U.S. Federal Reserve play with the gold markets (XAUUSD)?
We lived through one of the most intense weeks of trading this year! Gold markets saw sharp fluctuations after the U.S. Federal Reserve surprised markets with decisions that shifted the balance, before the precious metal closed its trading at 4,380.77$, achieving weekly gains of (+0.91%).
🚨 The biggest event: A shock from the U.S. Federal Reserve
In a crucial move, the Federal Open Market Committee (FOMC) voted unanimously to raise interest rates by 25 basis points to reach a range of (3.75% - 4.00%), the first rate hike since 2023. Fed Chair Kevin Warsh delivered hawkish remarks, confirming that inflation is still extremely high and that there is a possibility of an additional rate increase this year.
🔄 The gold journey from a brutal drop to a legendary rebound:
1️⃣ The sharp drop phase: Immediately after the rate-tightening decision, the U.S. dollar surged strongly, heavily pressuring gold back to test lower support levels and sharp lows that reached the $4,250 - $4,273 zones, with selling pressure increasing.
2️⃣ The rebound phase and shock absorption: After the initial shock was absorbed, the yield on U.S. Treasuries started to fall, along with a decline in global oil prices. This prompted investors to refocus on gold as a safe haven to address long-term inflation concerns, driving the price higher in a fierce uptrend. It filled its price gaps (FVG) and broke the intraday structure (ChoCh), reaching a weekly high at $4,439 before stabilizing toward the end of the week.
💡 Key takeaway: Markets often price in hawkish news in advance, and the recent rebound proves that the appetite for hedging with real gold is still stronger than the pressure from high interest rates.
👇 Share your thoughts in the comments:
After raising interest rates, do you think gold will build a solid base above $4,350 to move toward $4,500, or did the Fed succeed in curbing the rally?
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