- The Fed keeps rates without changes in 5.25%–5.50%, as expected, citing solid economic growth.
- The Summary of Economic Projections shows two rate cuts in 2025, perspective of the trimmed GDP.
- The gold is stable while the markets digest a dovish bias despite the persistent underlying inflation forecast.
The price of gold remains firm about $ 3,390 since the Federal Reserve decided to keep the fees without changes in the June 18 meeting. The Summary of Economic Projections (SEP) reveals that officials are still considering 50 basic relief points in 2025. At the time of writing, the Xau/USD quotes with minimal losses of 0.08%.
The XAU/USD ignores losses while the Fed maintains the stable rates and indicates 50 basic states of relief next year
The FED maintained the federal fund rate in 4.25% -4.50% as expected and said that the economy continued to expand solidly, that the unemployment rate remains low and that working conditions are solid. The committee said that “it is attentive to the risks on both sides of its double mandate”, and that it will continue to reduce its treasure bond holdings.
The SEP revealed that Fed officials expect the Gross Domestic Product (GDP) of 2025 to be slightly less than 1.7%in March, falling to 1.4%, and that the unemployment rate rises one tenth to 4.5%. The underlying inflation of the PCE was reviewed from 2.8%to 3.1%, and the federal fund rate remained unchanged at 3.9%. This suggests that those responsible for policies are considering two 25 basic points rate cuts this year.
Source: Summary of economic projections of the Federal Reserve
Gold reaction
The Xau/USD remained within known levels, while operators expect the press conference of the president of the FED, Powell. The first level of resistance to consider is $ 3,400, followed by the maximum of June 16, $ 3,452, and then $ 3,500. On the other hand, the 3,350 $ is the following, followed by the 50 -day SMA at $ 3.301, with an additional one seen in the minimum of May 29, 3,245.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
