Gold retreats from weekly highs on Fed’s rate decision

The Gold Index, XAU/USD hit a daily high at $1669 before erasing its gains later as traders are digesting the remarks by Fed Chair Jerome Powell and the Fed’s rate policy statement.

If XAU/USD clears the $1617.30 support, a re-test of $1600 is potential. Gold price erased Tuesday’s gains following the release of the November monetary policy meeting of the Federal Reserve’s FOMC.

The US central bank lifted rates by 75 bps to 3.75-4.00%, the highest level reached since 2008, at around the financial crisis. At the time of writing, XAU/USD is trading at $1635.50, down by about 0.80%.