The price volatility reappeared on the XAU/USD price chart which measures the value of gold against the USD seems to continue to be fierce by highlighting the action of a drastic plunge to approach 500 pips.
The featured jump has also re -tested the strongest resistance barrier ever at 1800.00 to continue moving slowly in anticipation of the opening of the New York session later.
As a result, the decline has also indirectly led to gold trading to erode the excellent performance in early November which recorded the latest high.
The main reason for the fall was the deck due to shocks from the increase in US 10 -year treasury yields as well as the greenback dollar’s enthusiasm which continued to take an ascending step.
Investors also appear to be more interested in strengthening cash holdings at a time when market sentiment is at risk due to the resurgence of the Covid-19 outbreak in several countries.
It is of course the main concern of investors to focus on the outcome of the FOMC meeting that will take place early Thursday morning to see the next Federal Reserve (Fed) move.
Also in focus is the RBS (resistance become support) 1780.00 zone which will be tested if the gold price remains intact in highlighting the ability to maintain the bearish trend for longer.
While the support zone of 1760.00 is again used as a zone that will be evaluated to issue the next target expectation after the zone managed to support the price spike in the past.
However, it is not impossible that the price of gold will be able to give a surprise to make an increase that is expected to first test the zone that is now the SBR (support become resistance) zone at 1830.00.
A higher surge will see the movement of gold prices penetrate the SBR zone to head to the SBR zone of 1850.00 before it is expected to be able to continue to record an aggressive surge.
