Gold trading remained gloomy with devaluation continuing until yesterday before flattening today (Wednesday) as investors awaited the outcome of the FOMC meeting early Thursday morning.
On the XAU/USD price chart which measures the value of gold against the US dollar saw the price decline continued since the beginning of early trading week.
The appeal of gold assets began to fade in a market that had previously been in high demand following the war crisis that sparked panic among investors.
The strengthening of the US dollar is also expected as investors absorb expectations for the Federal Reserve (Fed) to raise interest rates at policy meetings which will also add pressure on gold trading.
A lower price decline is expected as the price movement below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame continues to give bearish signals.
The continued decline is seen to track the focus level of 1900.00 before continuing the lower decline to the level around 1870.00 to test the RBS zone (resistance become support).
However, if the gold price rises again, the initial resistance of the price to be tested is seen at the level of 1950.00 and passing the MA50 barrier will provide an early indication for a change in the gold price trend.
Further gains will test the SBR (support become resistance) zone around 1970.00 before continuing the rise to return to touch the 2000.00 focus level.
