The Federal Reserve raised interest rates by 0.75 percent during its FOMC meeting, which began Tuesday morning and ended Wednesday afternoon. Gold price (XAU/USD) has seen a firmer bounce after touching a low of $1,815.00 in the late New York session. Fed Chair Jerome Powell went above and beyond his comments, factoring 75 basis points into the equation and including it in the monetary policy decision.

A rate hike of 50 basis points was predicted by the market, but new data from the US Consumer Price Index (CPI) released last week led Fed policymakers to go beyond expectations and raise interest rates aggressively. Despite the fact that numerous economies are facing rising inflationary headwinds, their uncertain economic growth and incapacity to generate major job prospects leave them little room to raise their benchmark rates. The US economy is quite strong, according to Fed Powell’s statement, and is well-positioned to handle tighter monetary policy.

The August gold futures bears have a strong technical advantage in the near term. The next price target for bulls is for June futures to close above firm resistance at this week’s high of $1882. Bears’ next short-term price target is to knock futures prices below $1800, which is good technical support.

Technically, first resistance is seen at today’s high of $1845, and then at $1858. First support is seen at this week’s low of $1806. and then at $1800.

Analyst: Ms. Teang Riya, Independent Analyst