Gold prices posted sharp losses on Thursday, as they remained below the bearish channel’s middle line. The yellow metal is currently trading near the first support level at $4736, if it breaks below this level, it could continue to decline toward the second support level at $4664. On the upside, if the price rises above the daily pivot point at $4881, it is likely to test resistance levels of $4953 then $5018.
Gold prices fell to a more-than-one-month low on Thursday, weighed down by a firm dollar and a hawkish Federal Reserve, which limited hopes for near-term interest rate cuts.
Market Watch
Federal Reserve holds interest rates
The Federal Reserve held its policy rate steady for the second consecutive meeting, as was widely expected, citing somewhat elevated inflation and giving little indication when it might next cut short-term borrowing costs. Fed officials’ economic projections indicated they expect to cut rates once again this year, largely in line with the Wall Street estimate.
Furthermore, holding rates steady was in line with estimates, as CME FedWatch, a tool that tracks monetary policy decisions, forecast that there was a 99 percent chance that rates would hold steady.
Gulf tensions surge after strikes on key energy
Qatar said Iranian missile attacks on Ras Laffan, the site of Qatar’s core LNG processing operations, caused “extensive damage” to its energy hub.
Saudi Arabia said it intercepted and destroyed four ballistic missiles launched on Wednesday toward Riyadh and an attempted drone attack on a gas facility.
Iran issued evacuation warnings before its attacks for several oil facilities across Saudi Arabia, the UAE and Qatar, as it prepared to retaliate for strikes on its own energy infrastructure in South Pars and Asaluyeh.
Dollar steadies near a 10-month peak
The U.S. dollar stabilized on Thursday, remaining near its 10-month high, after the Federal Reserve kept interest rates unchanged.
Investors are facing a cloudier view of U.S. monetary policy in the coming months, with a war in the Middle East muddying the outlook for a Federal Reserve that already was grappling with above-target inflation and an uneven labor market.
Looking Ahead
Markets are closely watching U.S. Jobless Claims at 12:30 GMT, Which could influence gold prices.