XAU/USD pair prices have rebounded sharply after recording March’s fresh low of around 1,895 dollars. The metal has witnessed significant bids after the announcement of the interest rate decision by the Federal Reserve (Fed). The Fed has raised the interest rates by 25 basis points (bps) after a time of three years. The decision is in-line with the street estimates; though, the bulletin of seven interest rate hikes in 2022 is beyond the predictions. A potential reversal in the gold prices indicates that the market participants have already priced in the worst-case scenarios from the Fed an interest rate hike was merely a formality to build significant long build-ups in the gold counter.
After the Fed’s announcement monetary policy, traders will focus on headlines from the Russia-Ukraine conflict that will determine the risk forces in the market.
Meanwhile, the US dollar index (DXY) is slipped sharply around 98.40 in absence of a 50 bps rate hike decision. The 10-year US Treasury yields have climbed near 2.19% on the announcement of seven rate hikes in 2022.
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