Gold tested the 4530-50 major support area yesterday and is sitting just trading above it at 4,565. No sign of reversal yet. The bounce is small and unconvincing. The descending trendline (red) and 4650 resistance are still capping every recovery attempt. Same levels from yesterday remain in play.
FOMC Summary (last night):
The Fed held rates at 3.5-3.75% as expected. But what happened around the decision was anything but routine.
Four Fed officials voted against the decision, the most dissenting votes since October 1992. Three of the four supported holding rates but "did not support inclusion of an easing bias in the statement." In plain English: three members (Hammack, Kashkari, Logan) wanted to remove any language suggesting future cuts. They are telling incoming Chair Warsh that easing is not on the table. Only Stephen Miran voted for an actual cut.
The FOMC statement noted that job gains have "remained low" while inflation is "elevated," partly from the "recent increase in global energy prices."
Powell's press conference delivered two major points. First, on rates, he was clear: "I think we'd want to see the backside of that and progress on tariffs before we even thought about reducing rate.
Second, the surprise. Powell said he would remain on the Fed's Board of Governors after his chairmanship ends May 15, citing the DOJ investigation into the Fed. "We're having to resort to the courts," Powell said. "We've been successful so far. But that's not over." This is unprecedented.
What this means for gold:
The FOMC outcome was hawkish for gold. No rate cut signal. Three dissenters wanting to remove easing bias entirely. Powell explicitly saying rates stay until oil AND tariffs resolve. The rate relief that gold needs is not coming anytime soon.
This reinforces the bearish pressure on gold through the same chain: oil high, inflation elevated, Fed stuck, dollar firm, gold under pressure.
Price at 4565 is hovering just above the major support area at 4530-50. Yesterday's candle tested this zone and bounced slightly but the bounce lacks conviction. The descending trendline (red) from the 4892 high continues to push price lower.
The 4530-50 zone is doing its job for now. But every test weakens it. And the Fed just told us rate relief is not coming. If this support breaks, 4450-4400 is the next conversation.
FOMC Summary (last night):
The Fed held rates at 3.5-3.75% as expected. But what happened around the decision was anything but routine.
Four Fed officials voted against the decision, the most dissenting votes since October 1992. Three of the four supported holding rates but "did not support inclusion of an easing bias in the statement." In plain English: three members (Hammack, Kashkari, Logan) wanted to remove any language suggesting future cuts. They are telling incoming Chair Warsh that easing is not on the table. Only Stephen Miran voted for an actual cut.
The FOMC statement noted that job gains have "remained low" while inflation is "elevated," partly from the "recent increase in global energy prices."
Powell's press conference delivered two major points. First, on rates, he was clear: "I think we'd want to see the backside of that and progress on tariffs before we even thought about reducing rate.
Second, the surprise. Powell said he would remain on the Fed's Board of Governors after his chairmanship ends May 15, citing the DOJ investigation into the Fed. "We're having to resort to the courts," Powell said. "We've been successful so far. But that's not over." This is unprecedented.
What this means for gold:
The FOMC outcome was hawkish for gold. No rate cut signal. Three dissenters wanting to remove easing bias entirely. Powell explicitly saying rates stay until oil AND tariffs resolve. The rate relief that gold needs is not coming anytime soon.
This reinforces the bearish pressure on gold through the same chain: oil high, inflation elevated, Fed stuck, dollar firm, gold under pressure.
Price at 4565 is hovering just above the major support area at 4530-50. Yesterday's candle tested this zone and bounced slightly but the bounce lacks conviction. The descending trendline (red) from the 4892 high continues to push price lower.
The 4530-50 zone is doing its job for now. But every test weakens it. And the Fed just told us rate relief is not coming. If this support breaks, 4450-4400 is the next conversation.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.