Gold Price tumbled after the Federal Reserve kept interest rates unchanged for the first time after raising rates for ten consecutive meetings. XAU/USD dropped from $1,952 to the $1,940 area.

As mostly expected, the Fed kept the Fed funds target range at 5.00-5.25. The "skip" is seen as hawkish considering that the economic projections from the FOMC staff show the peak rate a bit higher at 5.35%.

With the Fed signaling that more rate hikes are likely, US Treasury bonds tumbled. The 10-year yield jumped from 3.78% to 3.85% and the 2-year from 4.64% to 4.80%. The US Dollar Index recovered from daily losses, rising back to the 103.25 area.

XAU/USD lost more than $10 in a few seconds, hitting a fresh daily low at $1,939. Gold is under pressure, looking at the $1,940 support area. A break lower could trigger more losses.

Market participants now await Chair Powell's press conference. Volatility is expected to remain elevated. If Gold recovers, resistance is seen at $1,955, followed by the daily high at $1,960.