GOLD Analysis – Successfully Holds Above $2,030, Gold Tries Toward $2,050


Gold trading at the opening of the week yesterday showed a rather mixed movement as questions about the outcome of the FOMC meeting still lingered in the market.

The impact of the meeting will have a big impact on the US dollar and at the same time affect the current movement of gold.

On Monday yesterday, the attempt to increase the price was shown to reach the height of last week's level, but the price fell again in the New York session.

Examining the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to reach a level of around 2037.00.

However, after testing the highs that were also tested last week, the level remained a resistance for the price to see the decline happen again in the New York session.

The price dropped to around 2022.00 but is supported to rise again after touching the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart.

The price flattened slowly in the 2030.00 zone at the opening of the Asian session this morning (Tuesday) before a rise was exhibited at the beginning of the European session past the previous high of 2037.00.

But the price momentum is still slow as investors are still cautiously observing the current market situation which is uncertain.

The price increase if it continues after this is seen to test the level of 2050.00 which will also record the latest high level for gold.

A higher jump can be expected as a result of the reaction after the FOMC meeting and the release of important data this week.

However, a price plunge can also be expected to happen, seeing the price of gold drop significantly again.

A dip below the 2030.00 zone can push the price lower towards the 2000.00 concentration zone.