Gold prices are consolidating their previous swing near $1,960 early on Friday, as the dust settles following the Fed and European Central Bank (ECB) policy announcements.
Gold prices saw good two-way price action on Thursday, falling to the lowest level since March 17 at $1,925 before an amazing recovery to challenge the $1,960 threshold. Gold prices fell in the first half of the day as a result of lingering US Dollar strength, inspired by the Federal Reserve's pause on hawkish policy. Furthermore, the ECB's 25bps rate hike also exacerbated the pain for non-interest bearing Gold prices.
The Federal Reserve maintained the Fed funds rate at 5.0% -5.25% on Wednesday, pausing the rate hike cycle for the first time since early 2022. However, in the Statement. The Fed's Economic Forecast, the so-called Dot Plot chart, paints a hawkish picture, with two more 25 bps rate hikes ahead.
Until this Friday, markets are waiting for the Bank of Japan (BoJ) policy decision, although it should have no significant impact, as the central bank is likely to keep the status quo. at the June meeting.
Gold prices saw good two-way price action on Thursday, falling to the lowest level since March 17 at $1,925 before an amazing recovery to challenge the $1,960 threshold. Gold prices fell in the first half of the day as a result of lingering US Dollar strength, inspired by the Federal Reserve's pause on hawkish policy. Furthermore, the ECB's 25bps rate hike also exacerbated the pain for non-interest bearing Gold prices.
The Federal Reserve maintained the Fed funds rate at 5.0% -5.25% on Wednesday, pausing the rate hike cycle for the first time since early 2022. However, in the Statement. The Fed's Economic Forecast, the so-called Dot Plot chart, paints a hawkish picture, with two more 25 bps rate hikes ahead.
Until this Friday, markets are waiting for the Bank of Japan (BoJ) policy decision, although it should have no significant impact, as the central bank is likely to keep the status quo. at the June meeting.
