The Fed's resolute resistance to inflation dispels the market's thoughts of a rapid shift to easing by the Fed in the short term. However, aggressive rate hikes have increased market fears of a recession.

The prospect of general interest rate hikes by global central banks continues to put pressure on gold prices, while geopolitical tensions and the risk of a global economic recession have also boosted the safe-haven demand for the USD. Therefore, gold faces the risk of further declines. 

Putin's local military mobilization on Wednesday triggered concerns about tight oil and gas supply in the market, with oil prices rising by more than 2%. Nevertheless, oil prices wiped out the gains before the Fed meeting. Markets are now predicting that during the Fed's September meeting, they will continue to take measures to contain inflation growth over Putin's threat.

Canada's monthly CPI fell 0.3% in August, the first drop since this year and the biggest drop since May 2020. The annual growth rate decreased from 7.6% to 7.0%. The USDCAD continued to rise (Wednesday) before the New York session and hit a fresh daily high of 13,398 as Canadian consumer inflation data weakened on Tuesday.

The Federal Reserve (Fed) is aggressively tightening monetary policy, and expectations of rising interest rates continue to suppress risk assets such as cryptocurrencies. Then, there is a risk that bitcoin will continue to break down.

Under the risk of further escalation of the conflict between Russia and Ukraine, gold has attracted some safe-haven funds. Faced with the FOMC75's 75-basis-point interest rate hike expectation, the direction of gold still depends on the Federal Reserve's forecast of the final interest rate. If the Fed expects its final interest rate to be above 5% in the next few years, it will reinforce hawkish expectations and trigger a fresh rebound in the USD.