The Fed increased interest rates by 25 basis points as anticipated and made no other changes. Fed Chair Powell made no allusions and reiterated the central bank’s reliance on facts while leaving all other possibilities open. Although US data has been inconsistent since the FOMC meeting, labour market indicators still point to a very solid job market. The US ADP report’s recent beat was actually one of the factors that drove long-term Treasury rates and the US Dollar higher, which eventually put pressure on gold because it is sensitive to changes in real yields and the US dollar.

Daily Gold
As the US statistics continued positive, Gold rejected the 1984 resistance and began to drop, as can be seen on the daily chart. With a defined danger below the level and a strong support level at 1934, buyers are expected to enter the market with an eye towards the 1984 resistance and finally a breakthrough. On the other hand, the sellers will like to see the price move lower in order to exert more pressure on the market and swarm in to target the 1805 swing low level.

Four-hour timeframe technical analysis of gold

We can more clearly observe the important levels of support and resistance on the 4 hour chart. The price is likely to head towards the 1893 low next if it breaks through the current 1934 support. On the other hand, a rally into the 1984 resistance should occur if the price bounces. Therefore, what occurs here will determine where Gold goes next.

Upcoming Activities

All eyes will be on the most recent US NFP data today. This NFP data won’t affect the Fed’s decision because they will receive another one before their next meeting, but it may alter market expectations. Strong figures should put pressure on gold because the market anticipates the Fed to stay hawkish, while poor readings are likely to boost it because the market anticipates the Fed to have completed the rate rise from last week.

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