Sharp Rise Post-FOMC To A New All-Time High

Gold jumped above $2200 for the first time after the FOMC meeting. The previous all-time cycle high of $2,195 was reached earlier this month.

• As expected, the Fed Funds rate target range was maintained at 5.25-5.5%. Revisions to the Fed funds path, as well as on the economy and inflation were all hawkish.
• However, the dot plot continued to show three expected rate cuts this year while for 2025 the number of cuts expected was reduced from four to three.
• Also, Fed Chair Powell said "the story is the same one," meaning rate cuts are still on the cards and the Fed is confident it will achieve its objectives over time.
• Currently, bullion is 0.8% higher in the Asia-Pac session at $2202.66, after closing 1.3% higher on Wednesday.
• The USD index reversed roughly 0.7% lower from its intra-day highs as a May/June Fed cut was not categorically ruled out.
• According to MNI’s technicals team, the trend condition in gold is bullish and having cleared previous resistance at $2135, sights are on $2206.6 next, a Fibonacci projection.