GOLD Analysis - Gold Holds Above $ 1,780 Amid Hawkish FOMC Minutes Statement

thecekodok

 Examining the movement to the XAU/USD price chart which measures the value of gold against the USD it seems that it remained plummeting in the European session on Wednesday but the price displayed a slight increase at the end of the session.


The rise also continued into today's trading session (Thursday) to make an attempt in testing the resistance level of the Moving Average 50 (MA50) witnessed on the 1 -hour time frame.


Even so, the price of gold seems to be doing only a slow and horizontal movement in the middle of the holidays in the United States (US) in conjunction with the ‘Thanksgiving Day’ celebrations.


Gold trading movements are seen still tending to make a decline in line with hawkish mixed statements voiced during the minutes of the FOMC meeting early Thursday morning that gave the US dollar an advantage in the market.


In doing so, the prospect of the Federal Reserve (Fed) for implementing policy tightening seems to be becoming increasingly clear which will at all be a factor dampening the hopes of gold prices to soar.


Another risky market sentiment following the increase in the Covid-19 outbreak in several major economies could also be an aspect that could influence investors to increase cash holdings.



Thus, the RBS (resistance become support) zone of 1780.00 is likely to remain as the nearest major zone to be tested in the expectation that the price will be able to penetrate the zone.


A lower decline will see the gold price move to the support zone of 1760.00 and will also be studied by investors to target the next expectations to be achieved.


With a different tone, the SBR (support become resistance) zone of 1800.00 which has also been a resistance before is likely to be the target if the price starts to give up action.


This situation will certainly support the expectations of investors in the desire to see the price of gold make a trend change with the expectation of reaching the SBR zone of 1830.00 first.