Gold's positive performance at the beginning of the week began to stagnate after the market digested the latest FOMC meeting early this morning.
The Federal Reserve (Fed) kept interest rates unchanged at 4.50% which again had a positive impact on the movement of the US dollar.
Gold trading managed to show an increase in price in the Asian session this morning (Thursday) but again experienced a significant drop in value, continuing in the following session.
Price movements on the XAU/USD chart, which measures the value of gold against the US dollar, were seen to be flat until the market digested the results of the FOMC meeting.
From a level of around 3370.00 at the opening of the Asian session this morning, the price made an increase to a high level of around 3414.00 before the direction of the price movement changed.
The price then plunged rapidly with a bearish signal of the price moving below the Moving Average 50 (MA50) line on the 1-hour time frame on the chart.
The price decline as of 4 pm reached around 3320.00 with strong momentum that sees the price falling to lower levels.
The 3300.00 level is expected to invite price reactions before the decline continues towards the focus zone at 3270.00.
However, it is not impossible for the price to rebound to reach the heights reached in the previous Asian session.
If there is a change in the upward trend for the price, this week's high of 3433.00 is likely to be challenged and overcome before the target shifts back to the record ATH of 3500.00.
