Gold Spikes to $4085 on Fed Pause as Traders Eye Sell-the-Rally Setup

Gold gained sharply after the Fed rate pause. Having reached an intraday high of $4085, it is now around $4067.

By a 9–3 vote, the Federal Open Market Committee decided to keep the benchmark federal funds rate at 3.50% to 3.75% for the fifth meeting in a row while continuing their ample reserves policy. Despite strong productivity and consistent employment, economic activity keeps growing; yet, current geopolitical unrest and supply shocks have driven inflation persistently above the Fed's 2% goal. Three committee members, Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, voted in favor of an immediate 25-basis-point rate rise, therefore indicating mounting internal pressure to tighten monetary policy should energy costs and inflationary pressures continue.

 Near -term support -$4000.  Major bearishness below $3940. Any violation below $4000 targets $3980/$3940. Near-term resistance - $4050/$4064/$4080/$4116/$4145/$4205/$4245.

 It is good to sell on rallies around $4098-100 with SL around $4165 for a TP of $3940/$3900/$3800.