As expected and awaited, the results of the FOMC meeting earlier this morning are indeed driving the direction of clearer price movements for gold trading.
Hope is shining again for investors as the value of gold has rebounded above the $ 1,800 level heading into weekend trading.
On the XAU/USD price chart which measures the value of gold against the US dollar saw the 1800.00 price zone has managed to curb the fall of the lower price despite several times the price tested it.
The results of the FOMC meeting earlier this morning gave a dovish signal in the setting of monetary policy by the Federal Reserve (Fed) making the US dollar depreciate.
US treasury yields, which also continued to move weakly below the 1.30% level, added pressure on the US dollar, which will instead be benefited by the movement of the gold commodity.
A jump of over 200 pips on the XAU/USD chart continued on Thursday trading saw the price hit a weekly high of almost 1820.00 as far as the European session.
A higher rise would be expected for the price to test the highs tested last week around 1834.00.
Overcoming the resistance will push the price increase to continue in a bearish trend towards the level of 1850.00 in the SBR zone (support become resistance) before.
However, investors need to remain vigilant for a reversal of price situations as there is a possibility of profit taking activity on weekend trading.
The 1800.00 zone will remain an important zone to support the price increase again after successfully carrying out the task for 4 weeks.
If the price plunges below the 1800.00 zone, investors will see it as a signal for the beginning of the bearish trend of gold trading.
The decline will head back to the previous focus levels around 1765.00 and also 1745.00.
