Gold Prices React to Fed's Dovish Tone

Yesterday, gold soared past $2,328 per ounce following a more dovish stance from the Federal Reserve. However, during the Asian session, profit-taking took hold as the Fed signaled its intent to maintain interest rates at current levels for an extended period, diverging from earlier expectations.

Investors are capitalizing on recent gains by selling off gold. From a technical standpoint, the market is currently finding robust support around the $2,285 mark, indicating a resurgence of weakness below $2,300. This level corresponds with the 50% Fibonacci retracement level of the March-April rally. A breach of this support level could precipitate further declines. On the upside, yesterday's peak at $2,328 will act as a resistance level, with the $2,341-43 range, tested on April 12, likely posing another obstacle for upward momentum.