FXstreet.com (Barcelona) - Gold prices rally from $1,111 low on Tuesday extended to intra-week high at $1,141 (Dec 11 high) to drop afterwards in post-Fed dollar strength to test support area at $1,128/29 (Dec 14 and 15 highs) at the moment of writing.
The Federal Reserve announced that consumption and employment signals point to U.S. economic recovery and, therefore, most of its extraordinary liquidity-supportive measures will be removed by February 1, which opens the doors to a rate hike, from the current 0% to 0.25%, on the target rate for overnight loans between banks.
The Dollar soared across the board after Fed statement with EUR/USD plunging to a fresh 3-month low at 1.4370 and GBP/USD dropping more than 200 pips, from 1.6410 to 1.6200 low.
