GOLD Analysis - Ahead of the FOMC This Week, Gold is Sadly Below $ 2,000

thecekodok

 Gold trading last weekend flattened below the $ 2,000 level after a surge earlier in the week had reached a high that almost surpassed the all -time record high (ATH) ever reached in August 2020.


War sentiment between Russia and Ukraine continues to be the driver for the movement of gold as a safe-haven asset gaining traction in a risky market environment.


Positive reports of talks between Russia and Ukraine have somewhat eased tensions in the meantime.


Investors ’focus began to shift to the policy meetings of major central banks this week particularly the Federal Reserve (Fed).


The Fed is expected to raise interest rates by at least 25 basis points at this meeting which will drive a surge in the value of the US dollar in the market this week.


The strengthening US dollar could also put pressure on gold after a bearish pattern has been on display since last week.


On the XAU/USD price chart which measures the value of gold against the US dollar it signals for a bearish movement following the price moving back below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.



The RBS (resistance become support) zone 1970.00-1960.00 became support for the price at the end of last week and continued at the beginning of this week's trading.


The continued lower decline is seen to test the level around 1950.00 before continuing the decline towards the focus target at 1900.00.


If the opposite happens, the price of gold rising above the level of 2000.00 will signal a change in the bullish trend again.


The expectation for a rise in the price of gold is to retest the 2070.00 high reached the week before beating the ATH record high around 2074.00.


Exceeding that level will create another new history for the price of gold and continue to carve a smile on the faces of gold investors.