It seems that the XAU/USD price movement which measures the value of gold against the USD still failed to break the focus zone at 1800.00 and has finally performed a deadly plunge action.
The jump is completely seen to have already penetrated the 1780.00 zone to break the most invulnerable fortifications as well as often supporting the jump since last week to display a clearer price pattern.
Which the plunge also almost tested the support zone of 1760.00 before climbing again in the Asian session today (Wednesday) which may want to make a ‘reversal’ only before remaining with a bearish trend.
Once again the market received a shock and the latest involved a hawkish statement by Federal Reserve (Fed) Chairman Jerome Powell who wanted to speed up policy tightening.
This situation will certainly make the market optimistic about the Fed to implement measures to reduce bond purchases at a rate earlier than expected as well as the original schedule before.
This will indirectly give good news to the greenback dollar to strengthen and will likely get demand from investors following the spread of the Covid-19 case which is still widespread.
Analysts issued an expectation that the gold price movement will likely return towards the 1760.00 support zone after the price has already managed to destroy the horizontal movement.
Significant expectations for a lower decline will see gold trading tracking the support zone at 1740.00 which was also the focus zone in October trading.
But it is not impossible that the decline only makes a fake breakout, assuming that the SBR (support become resistance) zone of 1800.00 will return to the target if the price records a spike again.
A more violent increase will see the price likely to penetrate the SBR zone to show the ability to fly to the next SBR zone at 1830.00.
