GOLD Analysis - Gold Investors' Expectations Shattered Again - - Financial Market Media No. 1 in the World GOLD Analysis - Gold Investors' Expectations Shattered Again GOLD Analysis - Gold Investors' Expectations Shattered Again

April 30, 2021

GOLD Analysis - Gold Investors' Expectations Shattered Again

 Gold trading in the New York session on Wednesday brought joy to gold investors as the value of the yellow metal showed an increase ahead of the FOMC meeting.

On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price rebound from the level of 1765.00 after testing the RBS zone (resistance become support).

The FOMC meeting with policy decisions remaining loose by the Federal Reserve (Fed) has prompted a higher rise in gold prices following the depreciation of the US dollar.

However, investors' joy did not last long as the price began to decline again after reaching a high of 1790.00 in the Asian session yesterday.

Price movements were more aggressive in yesterday’s New York session with the market reaction to the US economic growth data for the first quarter of 2021 rising and re -strengthening US dollar trade.

The daily decline in gold price yesterday over 300 pips hit a 2 -week low of 1756.00 before closing the New York session trading slightly higher to the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.

The price movement is still giving a bearish trend signal after the price in the Asian session this morning resumed its decline below the MA50 barrier heading back to the RBS 1765.00 zone.

A lower decline in gold prices will be expected if the US dollar manages to maintain its strengthening momentum.

The RBS 1745.00 zone is seen as the nearest support level which will be the focus of the continued decline in gold prices.

On the other hand if the price manages to rebound from the RBS 1765.00 zone, investors will be relieved to expect the price to rise back to the 1800.00 resistance zone.

The zone still failed to be penetrated after being tested since last week and remains a focus target by market analysts.