The strengthening of the US dollar after the outcome of the FOMC meeting earlier this morning was certainly not favored by gold investors as the precious commodity continued to depreciate.
Notice what happens to the XAU/USD price chart that measures the value of gold against the US dollar.
After the FOMC meeting, the price of gold plunged from the 1862.00 level until it almost hit the 1800.00 concentration level again.
The plunge around 600 pips or almost $ 60 depreciation is sure to disappoint many gold investors.
Previously, the price has been seen failing to continue rising beyond the price resistance zone of 1900.00, but with the decline shown this further strengthens the signal of the movement of gold price in a bearish trend.
After a slow return to the Asian session today and a slight increase to the level around 1824.00, the price is seen resuming the decline at the beginning of the European session towards the level of 1800.00 in the RBS zone (resistance become support).
The lower decline will be expected to pass the 1800.00 level before heading to the next focus level around 1765.00.
The level is seen as a price support zone when supporting the price rise again after the decline made in trading at the end of April.
For the bullish situation, the 1850.00 level in the SBR zone (support become resistance) is seen to be an important resistance before the gold price is able to give a signal for the uptrend again.
