The recent decision by the Fed to pause on future rate hikes is good news for gold. However, there are concerns that the yellow metal could face increased pressure as this move may push risk appetite up. Some analysts have warned that the Fed may still raise rates later in the day due to US inflation being far above the central bank's 2% target. Despite slipping below the 2 EMAs of the uptrend, gold remains stuck between key breakout support and resistance levels of 1935 and 1980. The Fed's actions could have a significant impact on the US dollar's value and, in turn, affect gold's performance.
Currently, gold is moving below the bearish band in all trading frames, and its decline may only stop if there is more positive news or if the price resistance at 1918 - $ 1900 is reached.
Today's target for gold traders should be to keep an eye on the 1955 zone, as the downtrend may continue around this price level.
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BUY strategy is making 100pips. And get ready for the upcoming sales
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SELL moved towards the target of 1930 and returned to 1938 as expected