Hawkish Fed Fuels Gold Sell-off: Gold Dives Below $4300 Amidst Rate Hike Fears

Gold pared most of its gains after a hawkish rate hike by the Fed. It hit an intraday low of $4291; it is currently at $4326

The Federal Open Market Committee (FOMC) concluded its two-day meeting on September 16, 2026, voting unanimously (12-0) to raise its benchmark federal funds rate by 25 basis points to a target range of 3.75% - 4.00% in its first rate hike since July of this year. Stimulated by persistently soaring inflation figures and rising energy costs, the central bank moved out of its long pause as it continued quantitative tightening (QT) balance-sheet reduction measures. The updated Summary of Economic Projections (Dot Plot) suggested a hawkish scenario, lifting the median dot to 3.5% from 2026 to 4.1%. Ahead of the statement, the 10-Year Treasury yield jumped near decades-highs of 5.00%, so the market looks to FOMC Chair Kevin Warsh for the press conference aftermath to assess whether this is a one-off step or the start of a tightening trend.

 Near -term support -$4250. Any violation below $4300 targets $4235/$4215/$4200/$4156/$4080/$4000. Near-term resistance: $4370/$4400/$4435/$4500/$4600/$4700.

 It is good to sell on rallies around $4378-80 with SL around  $4420 for a TP of $4215/$4000.