Gold hits 1-week lows after Fed’s decision
- USD rises across the board after FOMC statement.
- Fed kept rates unchanged and left the door open for a March rate hike.
- Gold hits fresh weekly low near $1,330/oz.
The US dollar rose moderately across the board after the release of the FOMC statement. The stronger US dollar pushed gold to the downside.
Initially, the yellow metal rose to $1,344/oz approaching daily highs but then reversed and dropped quickly to $1,332.70 hitting the lowest level since January 23. As of writing it was trading at $1,336 posting small losses for the day.
The Federal Reserve, as expected, left the Fed Funds rate unchanged on the last meeting presided by Janet Yellen. The central bank left the doors open for a March rate hike. In the statement, the Fed offered an upbeat assessment of the economy. According to the FOMC, inflation should stabilize around 2% this year.
XAU/USD Technical levels
To the downside, the immediate support is seen around $1,330 (20-day moving average / Jan 23 low), $1,324 (Jan 28 low) and $1,315. On the opposite direction, resistance might be located at $1,345 (Jan 15 & 31 high), $1,350 and $1,354.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
