Gold Prices Retreat, Then Rally on Fed's Dovish Twist
The Gold price (XAU/USD) initially declined on Thursday, trading in the $2,290s, as improved market sentiment reduced the demand for safe-haven assets.
Risk-On Sentiment: Asian stocks closed higher, and oil prices remained low, indicating a more optimistic market outlook. This reduced the need for Gold as a safe haven.Fed Meeting Shifts Gold's Direction
- The Fed's policy decision on Wednesday triggered a surge in Gold prices.
- The Fed's decision to maintain interest rates and slow down quantitative tightening was seen as a dovish move.
- Chair Powell's comments further eased concerns about potential rate hikes, boosting Gold's appeal.
Technical Analysis: Measured Move Pattern in Play?
- Gold's recent price action might be following a bearish Measured Move pattern.
- The price reached the Fibonacci 0.681 objective for the final C wave at $2,286, potentially indicating a reversal.
- A break below $2,285 could lead to further downside towards $2,245.
- Conversely, a break above the cluster of moving averages and $2,350 could signal a bullish trend and a potential retest of $2,400.