#XAUUSD #FOMC

This evening, the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve decided to keep key interest rates unchanged in the 4.25% to 4.50% range, in line with market expectations. This decision comes amid an economic environment marked by an unexpected contraction in GDP in the first quarter and ongoing trade tensions between the United States and China.

Fed Chairman Jerome Powell adopted a cautious tone during his press conference, emphasizing the dependence of monetary policy on economic data and the need to monitor developments before considering rate adjustments. This wait-and-see approach reflects the uncertainties surrounding the Trump administration's tariff policies, which have increased inflationary pressures while weighing on growth.

In the gold market (XAU/USD), prices experienced increased volatility. After hitting a two-week high of $3,435, the precious metal retreated to around $3,384,045,177,508,24 an ounce, amid renewed optimism regarding the U.S.-China trade talks. Announcements of planned talks in Geneva between representatives of the two countries reduced demand for safe-haven assets, leading to a decline in gold prices.

However, the outlook for gold remains supported by expectations of further rate cuts. Markets are now pricing in rate cuts starting in July, which could strengthen gold's appeal as a safe haven in a lower interest rate environment. Moreover, ongoing geopolitical tensions, particularly in South Asia and the Middle East, continue to support demand for the precious metal. Although the Fed has kept its monetary policy unchanged, current economic and geopolitical uncertainties could influence future decisions and, consequently, affect movements in the gold market.