Investors again breathed a sigh of relief when gold prices managed to close at higher levels again at the end of the New York session after initially making a decline following reactions to the results of the FOMC meeting.
As expected, the decline on the XAU/USD chart which measures the value of gold against the US dollar tested the support zone of 1760.00, with the lowest level reaching around 1753.00 with the initial strengthening of the US dollar.
However, the US dollar which later depreciated has pushed the price up up to 270 pips to the level of 1780.00.
Although the situation is seen as only temporary by investors, but the depreciation of the US dollar has given room for gold prices to rise.
Concerns over the Omicron coronavirus threat still hovering in the market will also affect the current gold movement.
After the price spike passed the Moving Average 50 (MA50) barrier on the 1 -hour time frame on the XAU/USD chart, the rise continued in today's trading but at a slower pace.
The price focus zone for the continued rise will head to the level of 1800.00 with the expectation of an attractive price reaction will take place in this important zone.
The next higher rise will test the 1810.00 zone and potentially reach up to the 1830.00 high for a clearer bullish trend movement.
On the other hand, if the price returns to show a disappointing movement for investors, the support zone at 1760.00 is seen to be re -tested for a decline.
The lower decline will mark the latest 11 -week low for gold with the next target being at the key support zone of 1700.00.
