GOLD Analysis – Ouch! Gold Prices Fall Again Following Fed Comments

thecekodok

 Gold investors need to continue to be aware of the volatile movement of the commodity's trade which is influenced by the current pedestal factors in the market.


The XAU/USD price chart, which measures the value of gold versus the US dollar, on Tuesday night witnessed an early rise in prices in the European session.


Gold as a safe-haven asset is again getting a pull in a market atmosphere that is at risk of being affected by the tensions of the Russia-Ukraine conflict that have re-ignited.


The price increase reached the high level around 1943.00 before returning to make its original decline lower than the price movement in the Asian session.


In fact, signaling for a bearish trend movement initially after the price fell below the 50 Moving Average (MA50) barrier on the 1 hour timeframe on the XAU/USD chart.


After the price dropped to levels around 190.00 in the New York session, the price started to flatten around it so that trading continued into the Asian session and the beginning of the European session today.



A lower decline in gold prices is expected to reach the level around 1900.00 also to test the support zone.


And if the downward momentum in the price is displayed more firmly, the decline that breaks the zone will also lead to the level of around 1870.00.


On the other hand, if the situation changes and the gold price jumps back up again, surely the resistance zone at 1950.00 will again become the focus for investors to assess whether or not the price will be able to break through that zone.


If the higher upside holds, the gold price is seen to be testing the SBR zone (support becomes resistance) 1970.00 before the next target is at 2000.00.