Gold prices soared after the Fed rate decision

[radex78]

The Fed's decision at yesterday's meeting finally held interest rates unchanged at 5.25-5.50% for the fifth time in a row. The Fed also emphasized that it would wait for more supporting data before cutting its benchmark interest rate.
As predicted by the market, it seems that the market response has caused financial markets to become more volatile. Gold, which was previously stagnant in the $2150 range, surged yesterday and even formed a new all-time high at $2222.77 before finally rebounding to $2203.
In the crypto market, most cryptocurrencies also experienced increases, Bitcoin jumped more than 9%, Ethereum rose 11%, Solana rose 12%.

The soaring gold price seems to reflect the market looking for alternative safe haven assets amidst economic uncertainty. While the price of gold itself is influenced by several factors, as reported by the FXOpen blog article, several factors that can influence the value of gold are

• Inflation Expectations and US Currency: Anticipation of rising inflation and a weakening US dollar, triggered by large fiscal and monetary stimulus, may lift the XAU market.
• Demand Recovery in China and India: A gradual increase in consumer demand in key markets such as China and India, coupled with new investments, could support a rise in gold prices.
• Geopolitical Tensions: As global geopolitical conditions remain tense, the appeal of the yellow metal as a hedging instrument may increase, thereby potentially supporting its price.
• Cost Opportunity: As the opportunity cost of holding gold decreases, the attractiveness of gold among investors will remain, thereby potentially contributing to the growth of the XAUUSD exchange rate.
  

The price of gold is now around $2201, a correction after the price spike occurred. Technically, based on MA 50, it is estimated that bullish sentiment for gold in the long term is possible. In fact, several forecasting sites have predicted that the price of gold could reach levels above $3,000 in the next five years, such as Gov Capital predicting that the price of gold will soar to $3,368. in mid-2025.

Gold D1 Ticktrader

[boltushkin]

Next move should be bullish as well. I expect the Fed to make a dovish surprise, currently too much delay in the easing cycle is priced in.