Gold prices moved higher around $1,780, keeping post-Fed rebound from the $1,753 during Thursday’s Asian session.
The XAUUSD originally reacted to the US Fed decision with a drawback to multi-day low before the details triggered the ‘buy the rumor sell the fact’ move. Adding to the corrective pullback could be the market’s preparation for today’s European Central Bank (ECB) meeting and the year-end consolidation in gold prices.
The Fed matched wide marked forecasts by doubling cutting the monthly bond purchases by $30 billion and the dot-plot also mentioned three rate hikes in 2022. However, Powell’s comments like “the Omicron variant poses risks to the outlook”, as well as refrain from rate hikes until the tapering is completed, recalled the gold buyers. It’s worth noting that stimulus hopes from the US and a run-up in the equities also helped the corrective pullback.
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