Search





Search





NewsCommodities

Federal Reserve hawkish hike sent Gold price lower

FXStreetSep 16, 2026 6:14 PM

View all comments（0）



The United States (US) Federal Open Market Committee (FOMC) announced a 25 basis-point (bps) interest rate hike following its two-day meeting, pushing the US Dollar (USD) firmly up against most major rivals. With this decision, the Funds Target Range (FFTR) stands floating in the 3.75%–4.00% range.

The accompanying statement showed that policymakers believe inflation remains elevated, although economic activity in the country expands at a solid pace. The US central bank also released the Summary of Economic Projections (SEP), which showed that 12 of 18 officials see one more 25-basis-point rate hike this year; four see two hikes; two see no more hikes.

XAU/USD Technical Outlook

Gold price retreated after trading as high as $4,366, now hovering around $4,328.92. The metal hovers around the 100-day Simple Moving Average (SMA) at $4,326.68, but remains capped well below the 20-day SMA at $4,445.34 and the 200-day SMA at $4,540.18, maintaining a neutral-to-bearish tone. Momentum is soft, with the 14-day Relative Strength Index (RSI) hovering around 47 and the 14-period Momentum indicator in negative territory, suggesting waning upside pressure while price consolidates under the broader moving-average ceiling.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Economic Indicator

Fed Interest Rate Decision

The Federal Reserve (Fed) deliberates on monetary policy and makes a decision on interest rates at eight pre-scheduled meetings per year. It has two mandates: to keep inflation at 2%, and to maintain full employment. Its main tool for achieving this is by setting interest rates – both at which it lends to banks and banks lend to each other. If it decides to hike rates, the US Dollar (USD) tends to strengthen as it attracts more foreign capital inflows. If it cuts rates, it tends to weaken the USD as capital drains out to countries offering higher returns. If rates are left unchanged, attention turns to the tone of the Federal Open Market Committee (FOMC) statement, and whether it is hawkish (expectant of higher future interest rates), or dovish (expectant of lower future rates).

Last release: Wed Sep 16, 2026 18:00

Frequency: Irregular

Actual: 4%

Consensus: 4%

Previous: 3.75%

Source: Federal Reserve

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

SpaceX Stock Price Forecast: Can SPCX Unlock Further Upside as Starship Nears First Orbital Flight?

TradingKey - SpaceX (SPCX) announced on September 15 local time that the 14th Starship test flight could take place as early as September 22, marking its first attempt to send the spacecraft into Earth orbit.

Bitcoin Price Prediction: As CLARITY Act Stalls and Fed Decision Looms, Will Bitcoin Price Continue to Fall?

TradingKey - As of the European session on September 16, Bitcoin (BTC) was consolidating near $75,800 following a 3.25% drop on Tuesday, reflecting market caution ahead of the Federal Reserve's interest rate decision.

Jensen Huang and Hock Tan Address AI Slowdown Fears as NVDA and AVGO Say Demand for Computing Power Remains Strong

TradingKey - On September 12, Eastern Time, Anthropic CEO Dario Amodei called for controlling the rate of capability advancement in frontier AI models, intensifying market concerns over data center investment and chip demand. Nvidia (NVDA) CEO Jensen Huang subsequently publicly opposed slowing down AI development, while Broadcom (AVGO) CEO Hock Tan stated that demand for compute infrastructure from frontier model development and inference operations remains strong.

September Fed Rate Decision Preview: Is a Rate Hike a Foregone Conclusion? US Stocks, Dollar, and Gold Face a Critical Test

TradingKey - The Federal Reserve will announce its September rate decision at 2:00 p.m. ET on Wednesday (September 16), followed by a press conference held by Fed Chair Kevin Warsh at 2:30 p.m. The meeting will also release the latest economic projections and the interest rate dot plot.

US Stocks Fall, Dow Drops Over 300 Points as 10-Year Treasury Yield Surges to Nearly 19-Year High; Chip Stocks Buck Trend, SpaceX Drops Over 3%

The 10-year U.S. Treasury yield briefly surged to its highest level since 2007, while international crude oil prices surpassed $100, both weighing on market sentiment as U.S. equities extended their decline, though chip stocks bucked the trend to post gains. At the close, the Dow Jones Industrial Average fell 0.63% to 52,093.11; the Nasdaq Composite Index dropped 0.78% to 25,981.57; and the S&P 500 Index slipped 0.45% to 7,585.73.

Featured Tools