Gold price waver as Fed delivers hawkish hold

• Federal Reserve's hawkish hold omits specific inflation terms, hinting at rate pause, affecting gold markets.
• U.S. Treasury yields rise, 10-year note at 4.581%; dollar strengthens to 108.29 on DXY, up 0.22%.
• Gold traders incur moderate losses, awaiting further details from Fed Chair Powell's press conference.

Gold prices slumped as the US Federal Reserve (Fed) delivered a hawkish hold. The Fed removed inflation language, an indication of a pivot towards maintaining rates unchanged. The XAU/USD trades volatile within the $2,750 - $2,740 range.

XAU/USD fluctuates after the Fed's decision to hold rates

On its monetary policy statement, the Fed acknowledged the labor market remains solid, though emphasized that risks to achieving the dual mandate goals "are roughly in balance." They added that economic activity continued to expand solidly, and officials would remain attentive to risks on both sides of its dual mandate, and the balance sheet reduction would continue at its previous pace.

The Fed's decision was unanimous.

After the data US Treasury yields are rising, particularly the US 10-year Treasury note yield, up four basis points to 4.581%. The Greenback rose as high as 108.29 as depicted by the US Dollar Index (DXY), which gains 0.22% at the time of writing.

Given the backdrop, Gold prices extended their losses, yet they were quite moderate, as traders await Fed Chair Jerome Powell's press conference.

Gold's reaction to Fed´s Decision

XAU/USD extended its losses toward the 200-hour Simple Moving AVerage (SMA) at $2,743. Still buyers are leaning onto that level, which if surpassed, would pave the way to test the January 27 low of $2,730, followed by the $2,700 mark. On the other hand, if bulls push prices above the day's high of $2,766, it could open the door to test record highs.