The "Dovish" statement made by Fed chairman Jerome Powell early this morning has had a strong impact on the American dollar.
Gold is seen to have traded high up to the level of $2,336 as soon as the statement was released. The Fed is seen to still maintain interest rates at the FOMC meeting early this morning.
Concerns about the risk of inflation following the surge in oil prices make the Fed more cautious in reassessing the decision.
The market now sees the interest rate implementation plan to be done in September 2024.
Even so, at the end of this weekend's trading session, the market will be presented with the US employment data report.
Technical Analysis
Based on the daily chart, the $2,300 price level will be the focus. If the price level fails to break through, gold is expected to go to the $2,340 level and then to the $2,370 level.
However, if on the other hand $2,280 will be an obstacle and if the price is successfully broken through, the price level of $2,240 will be the next obstacle.
