Possible—but “absolutely brutal” is doing a lot of work here 😄
PCE isn’t out until Wednesday, and much of the inflation picture is already known from CPI and PPI. The important part isn’t whether the number is high, but whether core PCE surprises above expectations.
Otherwise, this may simply be a mix of higher yields, a stronger dollar and profit-taking being blamed on an unreleased report.
$Gold after the Fed hike is getting really interesting here.
The easy take is “rates up = Gold down”, but I don’t think it’s that simple anymore.
Yes, the Fed has started hiking again and more hikes are likely. That keeps real yields high and gives the USD support, so Gold can absolutely still get hit hard on any fresh hawkish surprise.
But at the same time, Gold is showing much better resilience than you would normally expect in this type of rate environment.
For me there are 3 main scenarios now:
Hawkish / bearish
If the Fed goes again in October and December, inflation stays sticky, DXY pushes higher and the US 10Y goes back above 5%, then Gold can easily retest the 4230/4250 area and maybe push toward 4400 from below before another rejection.
Range / consolidation
Probably the most “normal” scenario. Rates stay high, but yields stop accelerating. Gold then chops between roughly 4300 and 4500 while the market waits for the next inflation and jobs data.
Bullish breakout
If yields start dropping, the market cuts back expectations for future hikes and Gold keeps holding despite a hawkish Fed, then a reclaim of 4440/4500 becomes very important. Above there, the 4900 area being discussed by some major banks starts looking much more realistic again.
What I’m watching now:
US 2Y = Fed expectations
US 10Y = probably the biggest Gold driver right now
DXY = needs to weaken for cleaner upside
Oil = inflation risk / more hikes
CPI + PCE + payrolls = the key data points
4230/4250 = major downside line in the sand
4440/4500 = key upside zone
The most interesting thing for me is simple: Gold is still holding up pretty well while yields are extremely high.
That tells me the structural bid is still there.
#XAUUSD #trading #GOLD
@Jasminepat64735@RobMirlach Hike(s) tend to be bearish to gold but if inflation becomes real problem then... can turn bullish. Yesterday gold candle did surprise me
Wild prediction! For gold to reach $6,300 by Christmas, we’d need a near-perfect storm: a sharply weaker dollar, collapsing real yields, an aggressively dovish Fed and/or a major geopolitical or financial shock.
Possible? Yes. Probable in just a few months? That’s a much harder sell.
$GOLD | FOMC Day — My Scenarios
Today is all about the Fed. A 25 bp rate hike is largely priced in, so for Gold the message about what comes next may matter even more than today's decision.
🔴 25 bp HIKE + hawkish Fed
Short term: bearish Gold → higher yields / stronger USD.
Longer term: continued tightening would remain a major headwind, especially if real yields stay elevated.
🟡 25 bp HIKE + dovish guidance
Short term: possible initial sell-off followed by a reversal.
Longer term: bullish if the Fed signals this is a one-off or that further hikes aren't necessarily coming.
🟢 NO CHANGE
This would be the real surprise.
Short term: potentially strongly bullish Gold as yields/USD could fall sharply.
Longer term: bullish only if the hold signals a genuinely less-hawkish policy path rather than simply delaying a hike.
For me, the key isn't just HIKE vs HOLD — it's what happens to the expected path of rates, Treasury yields and the USD after the decision.
Expect volatility. I'll let the first reaction settle before trusting the move.
$XAUUSD