Gold kept climbing even after the Fed rolled out the rate hike everyone had been bracing for. It gained 2.29% in the latest session, running from $4,285.8 up to $4,380.5 before pulling back a
Gold kept climbing even after the Fed rolled out the rate hike everyone had been bracing for. It gained 2.29% in the latest session, running from $4,285.8 up to $4,380.5 before pulling back a little to around $4,369. So the hike didn’t slow gold down, buyers just kept pushing. So the hike didn’t scare buyers off, gold just kept going.
Normally, higher interest rates are viewed as a challenge for gold. This time, though, the market appears to be looking past the Fed decision and focusing on the demand that remains underneath the surface.
That is the point Brien Lundin made when he compared today’s setup to late 2015. Back then, many traders had positioned themselves for a Fed hike, creating pressure on gold before the decision. Once the hike arrived, the bearish trade lost its main catalyst, and gold moved higher. Lundin believes a similar process could be unfolding again.
We had a look at the gold chart shared by Brien, and buyers still appear to have control of the market. The gold price rallied $94.7 from the session low of $4,285.8 to the high at $4,380.5. Even after some profit-taking, gold remained close to that high, trading around $4,369.
Source: X/@BrienLundin
The move developed in stages. Gold spent the early hours of the session trading between $4,285 and $4,310 before advancing toward $4,360. Buying activity then picked up again, helping push the gold price to its highest level of the day.
The fact that gold is still trading close to the session high is important. It shows that buyers have not rushed to exit positions after the rally. The first major resistance remains $4,380.5. If the gold price breaks above that level, the next areas to watch are $4,400, $4,420 and $4,440.
On the downside, support is located near $4,360, followed by $4,340 and $4,320. The $4,300 area remains an important psychological level for traders.
Many investors expect gold to weaken when rates move higher, but markets often react to expectations long before an event actually happens. In this case, traders had been preparing for the Fed hike for weeks.
That positioning created selling pressure ahead of the announcement. Once the Fed delivered the expected decision, the reason behind many of those bearish trades disappeared. Lundin argues that this has allowed the market to refocus on demand instead of rate-hike fears. The result is that the gold price moved higher immediately after the Fed announcement instead of falling further.
Read Also: Gold and Silver Prices Today: Both Are Rising, but Their Charts Warn of Another Drop
Beyond short-term trading activity, there is another factor helping support the gold price. Research using IMF and U.S. Treasury data shows that global official gold holdings have climbed to approximately $4.7 trillion.
Source: X/@randgroup
Foreign official Treasury holdings stand at roughly $3.7 trillion. That means gold has overtaken Treasuries in central bank reserves for the first time since 1996. This trend has been building for years. Gold holdings have grown from about $1.5 trillion in 2020 to $4.7 trillion today. Over the same stretch, Treasury holdings fell from roughly $4.0 trillion to $3.7 trillion.
Those numbers matter because central banks are one of the biggest sources of demand in the gold market. When they shift, the whole market feels it. As reserve managers continue adding gold, the gold price benefits from a steady stream of buying that is less dependent on daily market sentiment.
The gold price is entering the next phase of trading with momentum still pointing higher. A move above $4,380.5 would put $4,400 into focus first, followed by $4,420 and $4,440. If gold pauses after its latest rally, support levels at $4,360 and $4,340 could become important areas to watch.
The broader backdrop remains supportive. The Fed decision is now behind the market, central banks hold roughly $1 trillion more gold than Treasuries, and demand for the metal continues to provide support. For now, the gold price appears to be benefiting from a combination of post-Fed buying and strong central-bank demand, helping buyers maintain control as gold trades near record highs.
Many central banks have been increasing their gold reserves as part of broader reserve diversification efforts. Gold is often viewed as a store of value that is not tied to any single country’s currency or debt obligations.
Could the gold price reach $5,000
A move to $5,000 would likely require continued strong central-bank demand, supportive macroeconomic conditions, and sustained investor interest. While possible, it would depend on how these factors develop over time.
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The post Gold Price Today: Why Buyers Are Taking Control After the Fed Hike appeared first on CaptainAltcoin.
