As expected, the US Federal Reserve raised interest rates by a quarter percent. Fed Chairman Warsh stated that while supply shocks such as energy prices and geopolitical situations are difficult to resolve directly through interest rate hikes, the Fed must prevent localized price increases from evolving into broader inflationary pressures. Warsh also pointed out that economic data over the past seven weeks shows further strengthening of the US economy. He asserted that the Fed’s main problem is not an economic recession but persistent inflation above the 2% target level. Warsh’s hawkish comments are likely to reinforce investor expectations that the Fed is preparing for a new round of interest rate hikes to curb inflation, putting downward pressure on gold prices in the short term.

Gold prices may fluctuate between $4,222 and $4,337 in the short term. Pay close attention to potential entry opportunities at the higher end of this range. There is room for short-term pullbacks, and $4,357 can serve as a key support level; appropriate risk management is essential.

Risk Warning: This article is for market analysis purposes only. Price ranges and levels mentioned are for market observation and do not constitute investment advice. Precious metal prices are highly volatile; please make independent and prudent decisions and manage your own risk.

Gold price chart (1 hour):

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com