Investors have been presented with relatively flat gold price movements over the past week with volatile price fluctuations.
Palpitation is increasingly felt as the market is awaiting the results of the FOMC meeting this week which is seen to drive the market including gold commodities.
The movement of gold depends on the fluctuation of the value of the US dollar in the current market, if the US dollar is strong, gold will experience depreciation, and vice versa.
Therefore, the results of the FOMC meeting will determine what will happen to the US dollar at the same time as an indication of the direction of further gold movement.
Expectations for the Federal Reserve (Fed) to keep interest rates at 5.25% were slightly disturbed after two central banks surprised the market by raising interest rates last week.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, the price of gold is seen trading again above the 1950.00 zone after a surge last Thursday.
Even so, the surge did not continue last Friday which showed a flat movement ending the week's trading.
Resuming trading at the opening earlier this week, the price hovered around the Moving Average 50 (MA50) line on the 1-hour time frame on the XAU/USD chart, around the 1960.00 level.
If the price drop happens, the 1950.00 level is seen to be a support while making the price and investors expect the price to bounce back.
However, if the breakout price is lower, the decline will be extended to the 1940.00 support zone that has managed to hold back last week's price drop.
Meanwhile, for the expectation of an increase in the price of gold, surpassing last week's level, the price will test the resistance zone which is around 1980.00.
Passing that resistance then expect the rise to continue to the important level at 2000.00 which was the focus of the price before.
