GOLD Analysis – FOMC Will Determine the Direction of Gold!

<p>Gold traded slightly positive at the early opening of the week with higher prices showing compared to the flat movement at the end of last week.</p><p><br /></p><p>Gold traded between the $2,040 and $2,010 range last week with the decline seen on Wednesday seeing the price slip back below the $2,030 level.</p><p><br /></p><p>Analysts are still waiting for a clearer direction of price movement for gold which is expected to be driven by the results of the FOMC meeting this week.</p><p><br /></p><p>If the results of the meeting support the strengthening of the US dollar, the price of gold will be pushed down.</p><p><br /></p><p>On the other hand, if the US dollar weakens, this will open the way for gold to reach higher levels again.</p><p><br /></p><p>Looking at the XAU/USD price chart which measures the value of gold against the US dollar, the price which reached the level of 2010.00 last week has shown an increase again today.</p><p><br /></p><p>The 2030.00 zone is seen to be tested by prices in the European session this evening with expectations of higher upside potential to continue.</p><p><br /></p><p>This follows price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart at the opening of the Asian session this morning.</p><p><br /></p><p><br /></p><p>If a move higher occurs and overcomes last week's high, the nearest target seen that will be a target to test is at 2050.00.</p><p><br /></p><p>A higher increase in prices can be expected following the impact of the FOMC meeting and the NFP employment data which can trigger drastic price movements.</p><p><br /></p><p>In fact, the price could also plunge downwards with investors watching gold record new lows.</p><p><br /></p><p>The 2000.00 zone will be the most important zone to be tested and the reaction around it will give an indication of the further movement of gold.</p><p><br /></p><p>If it breaks through, the price of gold is at risk of continuing to experience a more severe decline, continuing to trade for the next few weeks.</p>

Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *