Gold prices have dropped on the Federal Reserve decision whereby no real assurance of more cuts down the line were presented. However, the door has been left open which limits the downside potential in this move. The fed cut interest rates by 25 percentage points for the second consecutive meeting, as most expected. In the statement, the central bank left the door open to more cuts but the divergence in the FOMC increased as two members voted for no change and one for a larger cut.
Once again Gold prices failed to keep up with the upward move and could not settle above the 1506.02 resistance level and as a result they went to trade below the 1500 level. The price is currently trading just above the 1486.98 support level with the momentum falling into the bearish territory. We will be focusing on the downside with the 1474.99 support level on our watch.
Support: 1486.98/ 1474.99
Resistance: 1494.87 / 1506.02