The US dollar failed to dominate the market after the FOMC meeting on Thursday morning and gave space to gold commodity trading to make a jump in price around $30.
After raising interest rates again by 75 basis points to 2.50%, Chairman Jerome Powell said he does not see the United States (US) being in recession because the unemployment rate is at a low level and the employment sector remains strong.
Additionally, Powell supported the central bank's idea of making a big rate hike at its next meeting, depending on economic data. However, at the same time Powell said that a slower rate of increase may be necessary to give time to assess the impact of the tightening measures.
Observing the price movement on the XAU/USD chart which measures the value of gold against the US dollar, in the Asian trading session yesterday the price moved horizontally below the price level of 1720.00 but at the opening of the European session the price started to increase but stalled and continued to hover around the 1720.00 .
At the New York trading session, investors saw a surge in prices as a reaction to the results of the FOMC meeting which depreciated the value of the US dollar in the market and allowed gold to rise.
The price increase that passed the 1720.00 zone also penetrated the Moving Average 50 (MA50) barrier level to signal further bullish movement for gold.
Continuing on trading in the Asian session this morning, the price is seen to be moving horizontally at the support become resistance (SBR) zone of 1738.00, but continuing on the European trading, the price has managed to resume its rise and is seen to retest the resistance zone at 1760.00.
For the next price increase, a higher increase for gold is expected to test the concentration zone of 1785.00 before heading towards the target level at the height of 1800.00.
On the other hand, if the price exhibits a price reduction again, it is likely that the price will return to the 1720.00 zone to indicate further movement to the investor.
A lower decline in the price of the gold commodity is expected to target the 1700.00 level to be tested, before the price decline will continue until it reaches the 1680.00 support zone.
