FX.co ★ Gold's reacts to FOMC meeting

Gold reacts with positive price gains and the dollar weakens.Before yesterday's Federal Reserve report was released, gold was trading at lows. It began to strengthen immediately after the release of the report and rose when Powell spoke at the press conference. The August Gold futures contract traded as high as $1740.16.Gold is currently at $1,744.18. The net profit was $15.40, or 0.90%.

At the same time, the dollar was down by 0.68%, or 0.729 points, with the dollar index currently settled at 106.24.

The current labour market conditions are very tight and inflation is incredibly high.US Federal Reserve Chair Jerome Powell attends a press conference following the US central bank's second consecutive 75-basis-point rate hike.He said that ongoing increases in the target range would be appropriate.The Fed chairman noted that recent indicators of spending and production had softened, while growth in consumer spending had slowed significantly. However, the US economy is not yet in recession due to strong labor market.The economy has not yet felt the full impact of a Fed rate hike. In future, Powell wants to make decisions meeting by meeting and decline to provide precise numbers as to the size of those future hikes.Another "unusually large" increase in interest rates may be appropriate at the Federal Reserve's September meeting, but the decision would be determined by the incoming economic data, including two more reports on inflation and employment, which would be published before the next meeting, Fed Chair Jerome Powell said.The Fed chairman stressed that US monetary policy is now neutral, meaning that the Fed could soon begin to slow the pace of rate hikes."We think it's necessary to have growth slow down, and growth is going to be slowing this year. We actually think we need a period of growth below potential in order to create some slack so that the supply side can catch up. We also think that there will be, in all likelihood, some softening in labour market conditions," Powell said.There is still a risk of doing too little and leaving the economy with this entrenched inflation. It is important to solve this problem now.He explained that the Fed does not pass judgement on the definition of recession. However, he noted that they would be keeping a close eye on second-quarter GDP data to be released on Thursday.In response to Powell's comments, gold spiked to daily highs.