In the uncertainty of the market ahead of the FOMC meeting early Thursday morning, gold trading is seen to have managed to display an excellent performance.
The price managed to jump almost to the level of $2,050 on Tuesday yesterday but was later seen retreating back to around $2,030 again.
Analysts see the factor supporting the increase in gold prices as the tension of the geopolitical conflict in the Middle East which is still ongoing.
As investors are wary of the movement of the US dollar, gold is gaining traction as a safe-haven asset in a risky market environment.
However, the price movement pattern may change after the market digests the results of the FOMC meeting later.
If observed on the XAU/USD chart which measures the value of gold against the US dollar, the price increase continued yesterday reaching a height of 2048.00 after last week's level was successfully overcome which was around 2037.00.
But before the price touched the 2050.00 level, the decline occurred again to the 2030.00 zone.
The price decline does not cross the Moving Average 50 (MA50) line on the 1-hour time frame on the chart which serves as support for the price.
Resuming trading today (Wednesday), the price of gold hovered slowly above the 2030.00 zone in anticipation of the approaching FOMC meeting.
The upside if it continues will continue to test the 2050.00 resistance before moving higher after that.
A stronger surge of impact after the meeting could potentially see the price head up to the 2070.00 highs.
However, investors will be worried if the price moves in the opposite direction, i.e. plunges down.
From the 2030.00 zone, the price of gold can reach the 2000.00 level which is one of the focus zones before.
In fact, a lower price drop from more than that level can occur with volatile movements that can trigger the effect of investors' reactions to the FOMC meeting later.
