The Federal Reserve kept interest rates unchanged and admitted their efforts to reduce inflation have failed. This caused the price of gold to rise as it is seen as a hedge against inflation. The central bank also indicated that additional rate hikes are unlikely in the near future. The Fed’s recent comments were seen as a shift towards a more dovish stance by market participants, leading to a rise in gold prices despite the bank’s reluctance to commit to further tightening.
Gold rallied on relief news, but its sustainability will depend on Non-Farm payroll data due this Friday. Weak data may push gold up, while stronger data could reverse the gains. Gold in MCX on daily chart is positive with RSI_14 above 50 indicating bullish bias. Watch out for 70380 level, as a trend reversal is expected below it.
