GOLD Analysis – Price Fixed at $2,340 Before Pulling Down


Gold trading also reacted to the release of United States (US) inflation data at the beginning of yesterday's New York session and also the FOMC meeting early this morning.

However, the price movement was not as aggressive as at the end of last week when the reaction to the US NFP employment data was published.

Observing the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price displayed a jump at the beginning of the New York session to the level of 2340.00 after leveling off in the previous session around 2312.00.

However, the price increase did not continue higher but instead shrank back to around 2322.00 at the close of the end of the session after the market examined the results of the FOMC meeting.

The hawkish tone maintained by Fed Chairman Jerome Powell seems to give the US dollar an advantage to return to strength after this.

Continuing trading in the Asian session this morning (Thursday), the price of gold was slightly lower to the level of 2310.00.

The price that started to move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the XAU/USD chart gave an early signal for a bearish movement for gold.

The price is expected to approach the 2300.00 level which is an important zone of price focus in the previous trade.

A lower drop below it will expect the continuation of the bearish pattern and the price will stop around the 2270.00 area.

The continued decline in addition to the latest 11-week low is to reach the expected level of 2222.00.

On the other hand, if the price of gold jumps up again, passing the level of 2340.00 reached yesterday will give a more positive sign on the next movement.

If it continues, the price can reach again around 2380.00 or the 2400.00 level which is among the focus targets.