Gold investors were forced to bear the disappointment of witnessing trading today (Tuesday) as the yellow metal asset further experienced a decline in value.
The flat price movement at the opening of Monday's early week yesterday continued the slow pattern at the close of last week's trade.
This is because the market is increasingly cautiously awaiting the results of the FOMC meeting early Thursday morning for certainty as to whether the Federal Reserve (Fed) will slow down policy tightening or vice versa.
After raising interest rates by 50 basis points at the last meeting of 2022 in December, the Fed is expected to further slow rate hikes to 25 basis points for the latest meeting.
But right now, the US dollar, on the other hand, is showing continued strengthening since yesterday's New York session in a market that remains uncertain.
If examined on the XAU/USD price chart which measures the value of gold against the US dollar, the price remains at the 1920.00 level and is blocked by the Moving Average 50 (MA50) level on the 1-hour time frame which gives an early signal to resume the bearish movement.
A lower decline occurred since this morning's Asian session continued into the European session seeing prices heading towards the 1900.00 focus zone.
Will give an indication of gold's further movement, if the breakout price is lower then expect a lower drop to the next target at 1870.00.
However if a rebound occurs ahead of the FOMC meeting, the bullish price will try to break through the MA50 barrier to trigger a bullish indication for gold again.
The rise will continue back towards the resistance zone at 1950.00 which was reached during last week's trading.
