The rebound in gold prices in Thursday's trading after reactions to the results of the FOMC meeting has relieved gold investors after a protracted decline since last week.
However, the price movement started to be gloomy after the price flattened compared to expectations to continue higher.
As observed on the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price was initially seen to have jumped from the support level of 1900.00.
Giving an early signal for a reversal of the bullish trend, the price has made a rise past the Moving Average 50 (MA50) barrier level on the 1 -hour time frame until reaching the 1950.00 focus level.
However, after the rise reached the focus level, the price failed to continue to rise higher and even declined and flattened below that level until it resumed trading today (Friday).
As far as the European session, the decline is still supported by the MA50 support level while investors are cautiously awaiting the opening of the New York market session expecting more active price movements before closing trading this week.
If the rise in gold price continues to continue, passing the resistance at 1950.00 will test the focus zone around 1970.00.
A higher rise will push the price back to the high zone reached last week at 2070.00 after first passing the resistance at the level of 2000.00
However, if the price plummets again, the support level at 1900.00 will be tested again like yesterday's trade.
The continued lower decline will test the level around 1870.00 before the lower target for the bearish trend of gold price is towards around 1830.00.
