The Fed kept the key rates unchanged between the 5.25% to 5.50% target range on Wednesday, with Chair Jerome Powell emphasizing that recent high inflation readings had not changed the underlying "story" of slowly easing price pressures in the United States (US).
Markets are now wagering a 75% probability that the Fed will begin easing in June, up from 59% on Tuesday, according to the CME Group's FedWatch Tool.
Looking ahead, the S&P Global US preliminary PMIs and Fedspeak will remain in focus for a fresh boost to Gold price.
Gold price technical analysis: Daily chart
Gold price confirmed a Bull Flag after closing Wednesday above the falling trendline resistance at $2,161.
If Gold buyers regain poise, the next relevant bullish targets are seen at the record high of $2,223 the $2,250 psychological level.
The 14-day Relative Strength Index (RSI), however, is in the highly overbought terrain, suggesting that the recent pullback could likely extend before the upside resumes.
On a daily closing below the $2,200 mark, Wednesday’s high of $2,189 will be put to the test.
Acceptance below the latter will open up a fresh downside toward Monday’s low of $2,146, below which the falling trendline support at $2,138 will come to buyers’ rescue.