Gold prices (XAU/USD) surged after the Federal Reserve kept interest rates unchanged but revised upward 2025 projections for the Federal Funds Rate (FFR). XAU/USD currently trades around the volatile $2170-$2180 area, showing significant gains.

Key Takeaways:

• Unchanged Rates: The Fed maintained rates at 5.25%-5.50%, in line with expectations.
• Robust Economy: The Fed acknowledged economic strength and a robust labor market but reiterated the unfinished battle against inflation.
• Powell’s Comments: Fed Chair Powell emphasized the need for more evidence before rate cuts and downplayed the impact of recent inflation data on the broader disinflation trend.

Technical Outlook:

• Key Range: XAU/USD hovers around $2,150, with potential for volatility in response to the Fed decision.
• Bullish Case: A dovish tilt could trigger a rally towards the all-time high (ATH) of $2,195.15, potentially exposing the $2,200 mark.
• Bearish Scenario: A drop below $2,150 could lead to a test of December 3 high and the March 6 low of $2,123.80, followed by $2,100.