Gold falls below $1500 as US Dollar jumps after Fed cut rates
- US Dollar gains momentum and breaks higher following Fed’s meeting.
- Central bank cut rates by 25bps as expected, Powell to deliver press conference.
Gold prices turned lower and dropped below $1,500/oz after the FOMC meeting. The metal dropped amid a rally of the Greenback. The DXY erased losses and is now up 0.15% for the day. The US Dollar also rose against Emerging Market currencies.
The Fed cut interest rates by 25 percentage points for the second consecutive meeting, as most expected. In the statement, the central bank left the door open to more cuts but the divergence in the FOMC increased as two members voted for no change and one for a larger cut.
XAU/USD back under $1,500 but session far from over
Ahead of Chair Powell press conference volatility is likely to remain elevated over the next hours. Price just printed a fresh daily low at $1,495. It was trading slightly below $1,500 with a negative tone but still above Tuesday’s low and within the weekly range. A break below $1,490 would add more bearish pressure to gold prices.
On the upside, the key level to watch continues to be the $1,510 zone: a consolidation on top would point to more gains.