Gold Market Analysis: "Rebound Ends as Gold Continues to Seek Bottom" – October 29, 2026, 11:07 AM

The Federal Reserve voted 10-2 to maintain the federal funds rate target range at 3.75% to 4%. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack recommended a 0.25% rate hike. The post-meeting statement remained unchanged from September, but emphasized that the committee needs to accumulate more data before determining the appropriate policy stance.

Fed Chair Waller stated during the press conference that economic indicators are moving in the right direction—strong consumer spending, robust capital investment, and healthy overall growth—but inflation remains too high and has stayed above target for nearly six years. He stressed the central bank's responsibility to bring inflation down. Regarding employment, the focus was primarily on price stability rather than labor market conditions, reflecting growing concerns about potential second-round inflation effects. Following the September rate hike, financial and credit conditions have begun tightening as expected.

After the decision was released, interest rate futures showed a slight increase in the probability of a 0.25% hike in December, rising to 78.4%, though expectations for a 0.5% hike have now faded.

Following the announcement, gold initially fluctuated between $4,025 and $4,067, then rose further toward $4,083 before retreating again. This morning, it dipped as low as $4,035 before rebounding to $4,069, followed by another test near $4,040. On the 15-minute chart, gold appears to be forming a narrowing triangle pattern.

However, yesterday’s rebound peak approached the October 15 low of around $4,084.5, suggesting that gold’s reaction to the rate decision may have been manipulated. It also indicates that the rebound is likely complete, with prices poised to break below $4,000 for a deeper correction. Investors could consider placing stop-loss orders above $4,085 and sell on strength, targeting $4,000 first.

The above information is for reference only and does not constitute investment advice.