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  • US dollar drops across the board after the Fed kept monetary policy unchanged.
  • XAU/USD approaches the record high it reached on Tuesday at $1,981. 

A slide of the US dollar boosted gold prices further to the upside, after the FOMC meeting. XAU/USD broke above $1,960 and jumped to $1,968, hitting a fresh daily high. It is holding near the top, supported by a modest slide of the greenback. The US Dollar Index fell to 93.25, reaching a fresh two-year low.

Silver remains in the intraday range, between 24.00 and 24.50. XAG/USD continues to trade flat around yesterday’s closing level but now near the daily high.

Could the Fed trigger another USD sell-off?

The Fed kept rates unchanged as expected. The FOMC statement was little change from the June meeting. In a few minutes, Chairman Powell will deliver a press conference. His word could add fuel to the decline of the dollar triggering another sell-off or help it recover ground from fresh lows.

US yields so far remained steady. If Treasuries start rising and the dollar remains under pressure, XAU/USD could rally further to test the record high set on during the Asian session on Tuesday at $1,981. A break higher could create more volatility and would clear the way for a test to $2,000.

Technical levels