There was a rise in the value of gold yesterday, but it did not last long as gold continued its fall in value to lower levels towards the end of the week.
If you look at the price on the XAU/USD chart which measures the value of gold against the US dollar, the price has plummeted from the 1785.00 level to the 1765.00 price support zone after the FOMC meeting.
In Thursday's trading, the US dollar returned to a bearish move against expectations to continue strengthening following the central bank's hawkish statement.
In contrast to other major currencies that managed to re -strengthen against the US dollar, gold’s rise only lasted while touching the 1776.00 high.
Then investors saw the price continue to plummet again breaking the price support at 1765.00 to record a daily decline of around 380 pips to the support zone of 1745.00 last week.
Attempts for the price of gold to slip lower below the 1745.00 zone stalled for a while as the price started to show a rebound in the Asian session this morning (Friday) until trading resumed into the European session.
The price increase is seen to test the resistance of 1765.00 in the latest SBR (support become resistance) zone and also the Moving Average 50 (MA50) barrier in the 1 hour time frame will be tested for further price movement.
If these hurdles are successfully overcome, the bulls will re-test the SBR 1785.00 zone reached when the bulls took place at the FOMC meeting.
The next higher rise will lead to the previous gold price attraction zone around the 1800.00 zone.
On the other hand, if today's price increase is just a price correction, the continued decline will re -test the 1745.00 support.
A clearer bearish trend will push gold price expectations to decline back up to the 1700.00 focus zone.
