Federal Reserve Holds Rates Steady

The Federal Reserve decided to leave interest rates unchanged on Wednesday, but signaled a possible shift towards rate cuts in the near future.

Fed wants to see "greater confidence" that inflation is moving towards its 2% target.

While inflation remains a concern, recent economic data suggests progress is being made.

• Inflation Stabilization

PCE Index has remained stable at 2.6%. Rapid price increases seen earlier are starting to slow down. 2.6% inflation rate is closer to the Federal Reserve's target of 2%. Central bank's aggressive monetary policies, such as interest rate hikes, might be starting to have the desired effect of cooling down the economy and reducing inflationary pressures.

• Labor Market Cooling

Less competition for workers could lead to slower wage growth. Wages are a significant component of production costs, and slower wage growth can help to contain overall inflation.

When the labor market cools down, it often indicates a decrease in overall economic demand. Lower demand can help to alleviate upward pressure on prices, contributing to inflation stabilization.

Note:Many investors believe the Fed will cut rates in September based on economic data expected in the coming weeks.

Gold Price Analysis

Daily Chart

The price of gold has increased and surpassed the 2430 level. This rise follows recent heightened tensions in the Middle East. Due to this increase, investors are likely to become more optimistic about gold's future and invest more money in it, potentially leading to the price reaching a new record high. However, if the price decreases and falls below 2430, investors who believe the price will decrease may start buying gold in anticipation of a price drop to the 2277 level.

4-Hour Chart

The gold price has risen above a downward sloping line on the chart and continued to increase rapidly. This indicates strong investor interest in buying gold. If this trend continues, buying interest is likely to increase further. Conversely, if the price falls below 2430, it may continue to decrease until it reaches an upward sloping line on the chart, where buying interest might increase again. Investors betting on a price decrease will likely wait for the price to fall below 2430 before investing, aiming for a price drop to 2277.

1-Hour Chart

The current upward trend of the gold price is indicated by a minor upward sloping line on the chart. Investors buying gold are likely to continue doing so as long as the price stays above 2430. If the price falls below 2430, they may reduce their buying. Investors betting on a price decrease will wait for the price to fall below key levels before investing, aiming for a price drop to the next support level indicated by a trend line on the chart. The average daily price range for today is marked by red lines on the chart.