GOLD recovered quite strongly, falling after FOMC
On the Asian market today (Thursday, December 19), 
XAUUSD Spot trading recovered strongly after a sharp decline in the previous trading day. Gold price reached its highest level at the time of writing at 2,618 USD/ounce, an increase of nearly 30 USD during the day.
The market will next receive US economic data, including final third-quarter GDP and weekly unemployment claims.
Market attention will then turn to Friday's release of the U.S. personal consumption expenditures (PCE) price index, the Fed's preferred inflation measure, which will boost the U.S.'s copper performance. US Dollar and gold in the short term.
FOMC
On Wednesday, the Federal Reserve cut interest rates as expected and predicted less policy easing in 2025. Federal Reserve Chairman Powell said the threshold for the next rate cut could be higher, which sent the US Dollar and US Treasury yields soaring, while at the same time, Gold fell more than 2% to a one-month low in trading on Wednesday.
Federal Reserve officials cut interest rates for a third straight time on Wednesday, but lowered their forecast for the number of rate cuts next year, signaling they are increasingly cautious about being able to reduce spending. How quickly does the loan cost?
The Federal Open Market Committee (FOMC) voted 11-1 on Wednesday to lower the federal funds rate to a range of 4.25%-4.5%. Cleveland Fed President Beth Hammack voted against, in favor of keeping interest rates unchanged.
In the FOMC policy statement, Fed officials noted that economic activity continued to expand at a solid pace. Labor market conditions have generally eased since the beginning of this year, with the unemployment rate rising but remaining low. Inflation has made progress toward the committee's 2% target but remains high.
The new Dotplot chart shows some officials expect fewer interest rate cuts next year than they estimated just a few months ago. Fed officials currently expect the benchmark interest rate to be between 3.75% - 4% by the end of 2025, which, according to the median estimate, would mean two rate cuts of 25 points each. basic.
Jerome Powell
The Fed will cut interest rates only twice next year amid rising inflation, according to Fed Chairman Jerome Powell, a forecast consistent with Trump's wait-and-see approach when he returned to the White House in January.
Powell said Fed policymakers want to see more progress in reducing inflation when considering future rate-cutting strategies.
US federal funds rate futures have reflected that the Federal Reserve will leave its benchmark overnight interest rate unchanged at its policy meeting on January 28-29 next year.
Analysis of technical prospects forXAUUSD
Thus, gold has enough conditions to decrease in price after falling below the 0.618% Fibonacci level and bringing price activity back below the EMA21 moving average, with a sudden impact from fundamental factors.
In the short term, although gold recovered from the 0.786% Fibonacci retracement level at $2,591, which was the bearish target noted by previous readers, it could still continue to decline further with a target around $2,538. . When the Relative Strength Index dropped below the 50 mark and was quite far from the oversold area, it showed that there is still plenty of room for price decline ahead.
During the day, gold price increases as long as they do not surpass the 0.618% Fibonacci level and EMA21 should only be considered short-term recovery.
Along with that, the downward trend in gold prices will be noticed again by the following technical levels.
Support: 2,591 – 2,552 – 2,538USD
Resistance: 2,624 – 2,634USD
SELL XAUUSD PRICE 2635 - 2633⚡️
↠↠ Stoploss 2639
→Take Profit 1 2628
↨
→Take Profit 2 2623
BUY XAUUSD PRICE 2549 - 2551⚡️
↠↠ Stoploss 2546
→Take Profit 1 2556
↨
→Take Profit 2 2561
XAUUSD Spot trading recovered strongly after a sharp decline in the previous trading day. Gold price reached its highest level at the time of writing at 2,618 USD/ounce, an increase of nearly 30 USD during the day.The market will next receive US economic data, including final third-quarter GDP and weekly unemployment claims.
Market attention will then turn to Friday's release of the U.S. personal consumption expenditures (PCE) price index, the Fed's preferred inflation measure, which will boost the U.S.'s copper performance. US Dollar and gold in the short term.
FOMC
On Wednesday, the Federal Reserve cut interest rates as expected and predicted less policy easing in 2025. Federal Reserve Chairman Powell said the threshold for the next rate cut could be higher, which sent the US Dollar and US Treasury yields soaring, while at the same time, Gold fell more than 2% to a one-month low in trading on Wednesday.
Federal Reserve officials cut interest rates for a third straight time on Wednesday, but lowered their forecast for the number of rate cuts next year, signaling they are increasingly cautious about being able to reduce spending. How quickly does the loan cost?
The Federal Open Market Committee (FOMC) voted 11-1 on Wednesday to lower the federal funds rate to a range of 4.25%-4.5%. Cleveland Fed President Beth Hammack voted against, in favor of keeping interest rates unchanged.
In the FOMC policy statement, Fed officials noted that economic activity continued to expand at a solid pace. Labor market conditions have generally eased since the beginning of this year, with the unemployment rate rising but remaining low. Inflation has made progress toward the committee's 2% target but remains high.
The new Dotplot chart shows some officials expect fewer interest rate cuts next year than they estimated just a few months ago. Fed officials currently expect the benchmark interest rate to be between 3.75% - 4% by the end of 2025, which, according to the median estimate, would mean two rate cuts of 25 points each. basic.
Jerome Powell
The Fed will cut interest rates only twice next year amid rising inflation, according to Fed Chairman Jerome Powell, a forecast consistent with Trump's wait-and-see approach when he returned to the White House in January.
Powell said Fed policymakers want to see more progress in reducing inflation when considering future rate-cutting strategies.
US federal funds rate futures have reflected that the Federal Reserve will leave its benchmark overnight interest rate unchanged at its policy meeting on January 28-29 next year.
Analysis of technical prospects for
XAUUSD Thus, gold has enough conditions to decrease in price after falling below the 0.618% Fibonacci level and bringing price activity back below the EMA21 moving average, with a sudden impact from fundamental factors.
In the short term, although gold recovered from the 0.786% Fibonacci retracement level at $2,591, which was the bearish target noted by previous readers, it could still continue to decline further with a target around $2,538. . When the Relative Strength Index dropped below the 50 mark and was quite far from the oversold area, it showed that there is still plenty of room for price decline ahead.
During the day, gold price increases as long as they do not surpass the 0.618% Fibonacci level and EMA21 should only be considered short-term recovery.
Along with that, the downward trend in gold prices will be noticed again by the following technical levels.
Support: 2,591 – 2,552 – 2,538USD
Resistance: 2,624 – 2,634USD
SELL XAUUSD PRICE 2635 - 2633⚡️
↠↠ Stoploss 2639
→Take Profit 1 2628
↨
→Take Profit 2 2623
BUY XAUUSD PRICE 2549 - 2551⚡️
↠↠ Stoploss 2546
→Take Profit 1 2556
↨
→Take Profit 2 2561
Nota
Gold is under pressure to fall below the threshold of 2,600 USD. Rising US government bond yields and the rise of the USD have hindered gold's ability to recover, increasing downward price pressure. The Fed's tightening stance and positive economic data continue to strengthen the USD, putting pressure on the gold market. This trend shows that gold's short-term recovery prospects will be limited.
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🧩Forex signals have a high win rate
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