Gold prices slightly decreased and lost significant gains after the Fed signaled a potential decrease in its monetary policy, despite pausing interest rate hikes. August gold ultimately dropped $0.90 to $1,958.
The statement from the Fed's FOMC meeting, which began on Tuesday morning and ended early Wednesday afternoon, revealed that the Fed kept interest rates unchanged as expected. However, the statement hinted at further rate hikes, with at least two more expected to occur this year, bringing the Fed's fund rate to an estimated 5.6% by year-end.
The statement noted that the US economy continues to expand at a modest pace. Traders are now awaiting a press conference from Fed Chair Powell.
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Technically, August gold futures bulls have the overall near-term technical advantage amid recent choppy trading. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.
Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,949. First resistance is seen at today’s high of $1,973 and then at last week’s high of $1,987. First support is seen at this week’s low of 1,953 and then at last week’s low of $1,953.
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Comment: ⭐️Make a trading plan: ✅Sell the $1,945-$1,943 range when the price hits the resistance area. ✖️Stoploss: $1,950.
AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!