September 23, 2021

GOLD Analysis - Gold Rises Ahead of FOMC, Can Rising Prices Survive?

 On the XAU/USD price chart which measures the value of gold against the US dollar is seen advancing higher to get out of the 200 pips horizontal zone previously.

After the price moved in the resistance range of 17.6500 and support of 1745.00 since last weekend resumed trading earlier this week, the price of gold is seen to have made a jump on Tuesday yesterday.

Gold continued to take advantage of the opportunity to strengthen against the US dollar as investors became increasingly wary of the movement of the US dollar ahead of the upcoming FOMC meeting.

The results of the FOMC meeting will give a clearer direction of price movement for gold on the XAU/USD chart for trading towards the end of the week.

The closest resistance that is seen to be tested by the price is at 1785.00 which forms a minor zone of SBR (support become resistance) which was previously the price support level last week.

A higher rise will test the 1800.00 focus zone which has been a ‘magnetic’ area for gold prices for the past few weeks.

If the price increase fails to continue, the price is likely to plunge back below the 1765.00 level that was successfully passed yesterday.

Even with a stronger bearish momentum, the price could slip lower until it passes the support level at 1745.00 to hit a new low.

The next price drop will lead to the previous main support zone, which is at the 1700.00 price zone.