XAU/USD slips below 4,550 after the Fed's most divided hold since 1992
XAU/USD declined around 1.5% on Wednesday, falling from a session high near 4,610 to trade close to 4,540 after touching a session low of about 4,510. Price has carved a series of lower highs and lower lows through the session, with selling extending after the Federal Open Market Committee (FOMC) announcement before a partial bounce off the intraday low.
The Federal Reserve (Fed) held the federal funds rate at 3.50% to 3.75% for a third consecutive meeting, sharpening its inflation language to "elevated" from "somewhat elevated" while citing higher global energy prices and a high level of uncertainty around Middle East developments. The FOMC declined to signal when policy may shift next, saying it would carefully assess incoming data and the balance of risks. The 8-4 vote produced the most dissents since October 1992: Stephen Miran preferred a 25-basis-point cut, while Beth Hammack, Neel Kashkari, and Lorie Logan voted to hold but opposed the easing bias added to the statement.
Gold sold off through the announcement as the firmer US Dollar and steady nominal yields outweighed the dovish reading of the easing-bias inclusion, with bullion extending its session-long retreat after the decision.
XAU/USD 5-minute chart
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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