Gold prices also showed a rebound following the depreciation by the US dollar after the riddle of the results of the FOMC meeting was answered earlier this morning.
The Federal Reserve (Fed) fulfilled its forecast to raise interest rates by up to 50 basis points, but a follow -up statement by Chairman Jerome Powell later got a negative reaction from investors which saw the US dollar weaken.
On the XAU/USD price chart which measures the value of gold against the US dollar showed a clearer price increase after a horizontal movement at the beginning of the week.
Still hovering at previous focus levels, the flat-bottomed price in the 1870.00 zone at the beginning of the week then surged to the 1900.00 high in trading that continued into the Asian session this morning.
There was a slight decline at the beginning of the European session, but gold prices are expected to continue to rise in the next session as the focus shifts to the US NFP employment data report over the weekend.
If the rise in gold price continues, the expectation for the target to the next focus level is around 1950.00 again and for the higher rise is at the target of 2000.00.
Still, be wary if the US dollar re -strengthens and puts pressure on gold.
The price may decline back to the level of 1870.00 or last week’s support zone around 1850.00 will be the focus for lower declines.
The US NFP jobs report is seen to drive further price movements for the US dollar for investors to determine the direction of the market in the coming weeks.
