XAU/USD: Gold falls below $1,930 as the Fed leaves interest rates unchanged but sees more room to raise them

After raising rates ten times in a row, the Federal Reserve put an end to its campaign but said it might do it again twice more this year.

After a chaotic end to Wednesday's session, the price of gold went down. On the second day of its meetings, the US Federal Reserve said it won't change interest rates. Investors were relieved by the news, but the central bank said it might raise rates twice more before the end of the year.

Gold bugs bought up at first, but then they changed their minds and cut back on their bets. In this situation, the news sent the XAUUSD up to levels near $1,950 per ounce, but it fell back to the day's low of $1,928. With today's US retail sales figures, we can expect more volatility.

Gold dealers were caught off guard by the Fed's hawkish surprise. The rate effort was mostly priced in as a pause or stop by the markets. Some even wanted the rate to go down this year. But Fed Chair Jay Powell thinks inflation isn't over yet, so he wants to raise rates a couple more times.