US Federal Reserve sends Gold to fresh one-month lows
- The US Federal Reserve hiked the benchmark interest rate to 3.75%–4.00%.
- Hawkish remarks from Fed Chair Kevin Warsh fueled demand for the US Dollar.
- The XAU/USD pair fell to a fresh one-month low of $4,235, maintaining its bearish tone.
Spot Gold (XAU/USD) is closing Wednesday with losses, trading around $4,250 after hitting an intraday high of $4,366. The bright metal came under strong selling pressure after the United States (US) Federal Open Market Committee (FOMC) announced a 25 basis-point (bps) interest rate hike, as expected. With this decision, the Fed Funds Target Range (FFTR) stands at 3.75%–4.00%.
The FOMC statement showed that policymakers believe inflation remains elevated, although economic activity in the country expands at a solid pace. About the labor market, the document reads: “Job gains have kept pace with the workforce, and the unemployment rate has changed little.”
Also, the Summary of Economic Projections (SEP) showed that officials anticipate at least one more rate hike before year-end, as 12 out of 18 officials expect one more 25 bps hike, while 4 officials expect two hikes. Only 2 members anticipate no more moves this year. Inflation is the key issue, as policymakers see inflation at 3.7% at the end of 2026 versus 3.6% in June, and core inflation is seen at 3.4% versus 3.3%.
Finally, Chair Kevin Warsh noted in the press conference that the decision was the “right” decision, as monetary conditions were not restrictive enough. His hawkish remarks fueled speculation that the US Fed could deliver up to two more interest rate hikes before year-end.
XAU/USD Technical Outlook:
XAU/USD trades at $4,262 and remains under pressure as it holds below the 100-day Simple Moving Average (SMA) near $4,326, the 20-day SMA around $4,442, and the 200-day SMA close to $4,540, with the shorter ones gaining downward traction, reflecting mounting selling interest. Technical indicators extend their declines below their midlines, reinforcing the bearish view.
On the topside, initial resistance emerges at the $4,300 threshold, followed by the 100-day SMA around $4,326, ahead of a more significant cap formed by the 20-day SMA near $4,442. The post-Fed low at $4,235 acts as immediate support, while additional declines below the $4,200 mark will open the door for a decline towards the psychological $4,000 threshold.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.61% | 0.67% | 0.61% | 0.49% | 0.63% | 0.78% | 0.71% | |
| EUR | -0.61% | 0.07% | 0.05% | -0.10% | 0.01% | 0.21% | 0.12% | |
| GBP | -0.67% | -0.07% | -0.02% | -0.18% | -0.06% | 0.13% | 0.04% | |
| JPY | -0.61% | -0.05% | 0.02% | -0.13% | -0.01% | 0.22% | 0.08% | |
| CAD | -0.49% | 0.10% | 0.18% | 0.13% | 0.13% | 0.32% | 0.21% | |
| AUD | -0.63% | -0.01% | 0.06% | 0.00% | -0.13% | 0.18% | 0.06% | |
| NZD | -0.78% | -0.21% | -0.13% | -0.22% | -0.32% | -0.18% | -0.11% | |
| CHF | -0.71% | -0.12% | -0.04% | -0.08% | -0.21% | -0.06% | 0.11% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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