The price of gold was traded below the $2,400 level yesterday as soon as the "hawkish" statement was delivered by Fed chairman Jerome Powell.
Powell has stated that the maintenance of existing interest rates is expected to remain in place for a long period of time.
In addition, the Fed will not be in a hurry to cut interest rates due to the potential increase in inflation due to world geopolitical factors.
The focus of the market tonight will be looking forward to the "Fed Beige Book" data report and the speech by the "Fed's Mester" to get a full picture of the Fed's interest rate maintenance action plan for 2024.
The market now only expects a 25-50 basis point interest rate cut starting at the July & September 2024 FOMC meetings.
The "Hawkish" statement by Fed Powell yesterday is seen to have failed to have a strong impact on the gold market. This follows market players' concerns about a counterattack by Israel against Iran.
Earlier this week, the United States has stated that the country will implement economic sanctions on Iran. This American action is seen to be able to exert strong pressure on the geopolitical conflict in the Middle East. America is expected to announce more detailed economic sanctions against Iran on Friday April 18, 2024.
Technical Analysis
Based on the 4-hours chart (4-Hours Time Frame), the gold market needs a bullish "candlestick" traded close above the $2,396 price level for gold to remain traded high.
At the same time making the level of $2,432 the main obstacle before the price of $2,450 is successfully reached. But if otherwise, the price level of $2,375 will be tested.
If the level is successfully broken, $2,350 is seen to be the main obstacle before gold continues to trade low at $2,319.
