Fed Raises Interest Rates for First Time in Three Years

The Fed's surprise rate hike is a short-term positive catalyst for DXY; the dollar's rate advantage is widening. However, the price is already above the SMA20 and SMA50, and RSI is around 55, meaning some of the news may already be priced in. MACD is slightly below the signal line, momentum confirmation is weak; therefore, the upward movement may remain limited. In the 1-3 day window, I expect an upward bias within the 99.6-100.2 band, but a picture vulnerable to profit-taking. For a strong breakout, the 100 level must be surpassed with volume.

The Federal Reserve's first interest rate hike in three years is generally a negative signal for gold prices, as rate increases raise the opportunity cost of holding gold and may strengthen the dollar. Although GLD's last close was 4295.775, up 0.56% in 24 hours, its RSI at 39.1 indicates weak momentum, and the MACD's negative position below the signal line increases downside risk. Trading well below the SMA20 and SMA50 also suggests a weak technical outlook. In the short term (1-3 days), selling pressure may persist, but the news impact could be limited. Nevertheless, the size of the rate hike and any hints about the Fed's future policies could create uncertainty.

The Fed's surprise rate hike is dampening risk appetite; the SPX fell 1.49% in 24 hours to 7553. With an RSI of 37.6, it is weak but has not yet entered oversold territory, while MACD is negative and below its signal line. The price is below the SMA20 and SMA50, indicating a short-term downtrend. A potential rise in bond yields after the rate hike could pressure equity valuations. Downside risk may persist over the next 1-3 days, but volatility could arise from an oversold bounce.