Fed's Rate Hike Shakes Gold: Experts Highlight Critical Levels

Gold price fell 2.4% following the Fed's rate hike news, dropping to 46.90. The RSI at 43 is in neutral territory but below the MACD signal line, indicating negative momentum and suggesting that short-term downward pressure may persist. The price is trading below the 20- and 50-day moving averages, supporting a weak technical outlook. The news flow confirms that the rate hike is negative for gold; however, some of the decline may already be priced in. In the short term, the 46.50-47.00 band should be watched as critical support; a break below this level could accelerate selling.

Although the Fed's rate hike news is a negative catalyst for gold, the latest closing price is at 4292 and the 24-hour change is positive. With RSI at 39, near oversold territory, this suggests the decline may be limited. MACD is negative and below the signal line, indicating weak short-term momentum. As it is trading well below SMA20 and SMA50, reaction buying may emerge. The impact of the news may be limited; I expect downward pressure over 1-3 days, but additional confirmation is needed for a strong decline.