Fed Raises Interest Rates for First Time Since 2023

The Fed's first rate hike since 2023 serves as a fundamental upward catalyst for the DXY. However, technical indicators already show that the price is above the SMA20 and SMA50, and the RSI is at 54 in neutral territory, suggesting that the news may be largely priced in. The MACD line is just below the signal line and momentum is weak, indicating that the upward movement may be limited. In the short term (1-3 days), a moderate rise in the DXY can be expected, but the 100 level may act as resistance. Nevertheless, if a 'dovish' tone follows the rate hike, the dollar could retreat; therefore, additional confirmation is needed for a definitive direction.

The Fed's first rate hike since 2023 is generally a negative signal for gold prices, as rate hikes raise bond yields and reduce the appeal of gold. However, GLD's latest close was 4334.325, up 1.19% in 24 hours, with an RSI of 51.66 in neutral territory. The MACD is in negative territory and below the signal line, indicating short-term weakness. The news could create downward pressure within 1-3 days, but the decline may be limited due to weak momentum. Nevertheless, since the rate hike news is fundamentally negative for gold, a downward trend is expected.