Gold prices dip 0.2% as Fed hints at no rush to cut rates

From Investing.com: 2025-01-30 02:11:00

Gold prices dropped by 0.2% after the Federal Reserve held interest rates steady. Fed Chair Jerome Powell stated there was no rush to cut rates due to strong economic growth, low unemployment, and inflation above target. Investors expect rates to remain unchanged until June, putting pressure on gold as a non-yielding asset. Key levels to watch are $2,740 support and $2,770 resistance.

The euro weakened against the US dollar as the Fed maintained rates and uncertainty about Trump’s policies lingered. Eurozone economic data disappointed, adding bearish pressure on EUR/USD. Today, focus is on the ECB rate decision and press conference, which could lead to market volatility. Key levels to watch are 1.04000 support and 1.04400 resistance.

The Japanese yen strengthened against the US dollar despite the Fed’s decision. The BOJ’s hawkish stance and confidence in stable inflation supported the yen. Expectations for more rate hikes in Japan may continue to weigh on USD/JPY. Key levels to watch are support at 154.000.



Read more at Investing.com: Gold Prices Dip as Fed Signals Caution on Rate Cuts