Current gold trading was also affected by the outcome of the FOMC meeting earlier this morning which was the main focus event this week.
Positive for gold, the US dollar has shown a decline after the announcement of a rate hike by the Federal Reserve (Fed) which dispelled investors ’expectations to see a strengthening king of the currency.
The depreciation of the US dollar has again given room for gold traded rising resumed in trading today (Thursday).
On the XAU/USD price chart which measures the value of gold against the US dollar initially has seen the price decline lower testing the previous expected focus level of 1900.00.
However, the price rebounded to around 1930.00 and tested the Moving Average 50 (MA50) resistance level on the 1 -hour time frame on the XAU/USD chart at the end of the New York session.
Continuing on the Asian session trading this morning, the price seems to continue to rise past the MA50 barrier giving an early indication for a reversal of the bullish trend for gold.
The price increase will test the resistance level at 1950.00 before heading to the SBR (support become resistance) zone of 1970.00 on the continued rise.
Meanwhile, if the price resumes the decline that has been exhibited since the beginning of the week, the support level at 1900.00 will be tested again.
If the level fails to curb the fall in gold prices lower, the decline is expected to lead to the level of 1870.00 to test the RBS zone (resistance become support).
