Fed Preview: Powell Could Fire Hawkish Warning Shot – Gold, S&P 500 Setups

The Federal Reserve is expected to keep interest rates stable at 5.25% to 5.50% during its April 30-May 1 meeting, with no changes in forward guidance anticipated. Focus is on Fed Chair Powell's press conference for future policy insights, particularly in light of recent inflation trends and tight labor markets, suggesting a potential hawkish stance. This could impact the timing of future rate cuts, possibly affecting U.S. Treasury yields, the dollar, and gold prices negatively.

In financial markets, the S&P 500 experienced a significant drop, failing to overcome key resistance levels, which might lead to further declines if bearish momentum continues. Conversely, gold prices have also fallen, breaching important support levels, with potential further declines or a recovery depending on upcoming market movements and Fed policy indications.