Federal Reserve Keeps Interest Rate Unchanged – Gold to Test 1,835 Chairman of the Federal Reserve, Jerome Powell, stated that the economy was making progress towards its goals. Gold bullish may look for a bullish trade above the 1,818 level today, targeting 1,833 and 1,842. The safe-haven asset Gold closed at $1807.95 after placing a high of $1808.95 and a low of $1791.20. Gold price forecast remains bullish as it extended its gains for the second consecutive session. The U.S. dollar remained under pressure for another day even after the Federal Reserve monthly policy meeting; it helps gold prices underpinned. Get FREE Forex Signals Now! Federal Reserve Keeps Interest Rate Unchanged – Gold to Test 1,835 The U.S. Dollar Index (DXY) extended its loss for the third consecutive session on Wednesday. It reached 92.24 level amid the cautious behavior of the investors. Furthermore, the Federal Reserve maintained its monetary policy and decided not to do anything unexpected this month. This ultimately faded expectations of investors waiting for some hints at the tapering of asset purchases. These developments took a toll on the U.S. dollar, and the greenback suffered for another day. On Wednesday, the policymakers at the U.S. Federal Reserve voted to leave the interest rates unchanged. They also voted to maintain the current support to economic recovery through bond buying of $120 billion per month. The Fed took no surprising step after it concluded the two-day meeting of the FOMC; hence, the yields on benchmark 10-year Treasury Yield remained flat and dropped by only one basis point to 1.226%. Jerome Powell Says, Economy is Making Progress The Chairman of the Federal Reserve, Jerome Powell, stated that the economy was making progress towards its goals. Still, there were ways to go before adjusting the monetary policy. The Bank also noted that the economy had made significant progress on the employment and inflation goals set by the Fed. That’s opening the door to the tapering of asset purchases. However, substantial further progress was still not reached to begin reducing the bond-buying. Powell repeatedly said that the Fed was willing to accept inflation moving above the target level of 2% for some time, only if it would help the job market return to pre-pandemic levels. Policymakers at Fed were of the view that the rising prices were temporary and caused by the supply bottlenecks formed by the sudden reopening of all businesses, and it will fade eventually. Powell further added, the slowing vaccination rates and the rising spread of Delta variant of coronavirus in some areas of the United States were a threat to the economy’s outlook. Continued progress on vaccinations could support a return to more typical economic conditions. All these comments from Powell and statements from FOMC failed to surprise investors and kept the U.S. dollar under pressure for the day. This ultimately supported the yellow metal prices on Wednesday. Quick Review of Economic Figures On the data front, at 17:30 GMT, the Goods Trade Balance from June showed a deficit of -91.2B against the expected -88.0B. It weighed on the U.S. dollar that pushed yellow metal further on the upside. In June, the Prelim Wholesale Inventories declined to 0.8% against the expected 1.2% and supported the U.S. dollar and capped further gains in gold prices. Gold XAU/USD Forecast – Technical Levels: Key Resistance at $1,835 Gold – XAU/USD- Daily Chart Support Resistance 1796.45 1814.20 1784.95 1820.45 1778.70 1831.95 Pivot Point: 1802.70 Gold XAU/USD Forecast – Daily Technical Analysis: Three White Soldiers Gold price forecast remains bullish above the $1,812 support level. The technical side of the gold continues to trade precisely as per our previous Gold Price Forecast, July 28, 2021. In the 4 hour timeframe, gold has formed a candlestick pattern “Three White Soldiers” at 1,811 levels. This pattern has the capacity to lead gold prices further higher until the next resistance. On the higher side, the yellow metal may find resistance at 1,835 levels as bulls have crossed over the 50 periods EMA. The 50 periods EMA (Exponential Moving Average – Red Line) was extending resistance at 1,812 levels. The bullish violation of this level has now opened up further room for buying and can lead it towards 1,835. The oscillator indicator Stochastic has entered the buying zone from the oversold zone. It’s now holding at 100, demonstrating bulls taking control. Forex trading market participants may look for a bullish trade above the 1,818 level today, targeting 1,833 and 1,842. Alternatively, closing below 1,833 can lead the gold price towards 1,814 levels. All the best! Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Ali B. Ali B. Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection. Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis. View All Post By Ali B. CommoditiesDaily Look share Read Next AAVE Price Forecast: Brace to Trade Breakout at $312 Ali B. 10 months Federal Reserve Keeps Interest Rate Unchanged - Gold to Test 1,835 Chairman of the Federal Reserve, Jerome Powell, stated that the economy was making progress towards its goals. Gold bullish may look for a bullish trade above the 1,818 level today, targeting 1,833 and 1,842. The safe-haven asset Gold closed at $1807.95 after placing a high of $1808.95 and a low of $1791.20. Gold price forecast remains bullish as it extended its gains for the second consecutive session. 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