Gold trading 'spilled' after the results of the FOMC meeting which investors have been waiting for in recent weeks.
The Federal Reserve (Fed) raised interest rates by 25 basis points to 5.25% following indications by Chairman Jerome Powell that there will be significant changes in monetary policy.
The market saw it as a signal to stop raising rates after this, although Powell did not mention it outright.
The weakening of the US dollar as soon as the results of the meeting were announced has seen a surge in the price of gold.
It can be observed on the XAU/USD chart that measures the value of gold against the US dollar, the price which slightly decreased to around 2008.00 has surged following the results of the FOMC meeting until it saw a price increase to the level of 2040.00 at the end of the New York session.
Continuing to surprise investors, the opening of the Asian market session yesterday saw a price difference (gap) that opened higher around 2060.00 before a 'spike' reached 2080.00.
This level became the highest record of all time for gold surpassing the records of 2020 (Covid-19) and 2022 (Russia-Ukraine war).
However, the price started to decrease again and in the European session yesterday, the price was seen to reach the 2030.00 zone.
A price rebound took place continuing the trade in the New York session to the level of 2059.00 before the price closed the end of the session trading around 2050.00.
A bearish pattern is displayed today (Friday) as far as the European session is concerned, but the price is still above the Moving Average 50 (MA50) support level on the 1-hour time frame for a bullish signal.
If the price bounces up to make an increase again, the 2050.00 level will be passed again for the price to return to the important height level at 2070.00 and also 2080.00.
It is not impossible that the latest record high price (ATH) will continue to be reached again.
However, if the price has started to move below the MA50 level, a lower price drop will be expected after passing the 2030.00 zone.
A further drop in price is seen to return to the previous 'magnetic' zone which is at the 2000.00 level.
Drastic price movements are expected in the New York session which will be highlighted by the release of the US NFP employment data report for April.
