Interesting movement of the price of gold displayed since yesterday until the results of the FOMC meeting are known to the market.
Let's take a look at what happened on the XAU/USD chart which measures the value of gold against the US dollar heading into the end of this week's trade.
Initially there was a surge in prices at the beginning of yesterday's New York session following the United States (US) producer price index (PPI) data published weakly following the reading of consumer inflation published on Tuesday.
The price broke through the 1950.00 level and managed to climb to around the 1960.00 high.
However, a significant plunge in prices was exhibited after the FOMC meeting until the close of the New York session.
The Federal Reserve (Fed) has kept interest rates unchanged, but has signaled to raise interest rates several times after this towards the end of 2023.
The US dollar, which had weakened initially, has strengthened again following the reaction to the hawkish message from the Fed.
After reaching around 1940.00, gold prices continued to decline in the Asian session this morning (Thursday) until the opening of the European session.
The latest 3-month low was recorded with the price reaching around 1930.00 with the expectation that the decline will continue in the following sessions.
After successfully breaking through the lows at the end of May, the price target is now to head towards the concentration zone at 1900.00 again.
The last time the price traded at that level was in mid-March.
However, if the price of gold makes a rebound, the 1950.00 level is seen to be the focus to be tested and potentially become a temporary resistance.
If it passes, there will be a signal for the bullish movement to continue again with the previous resistance level around 1970.00 will try to reach the price.
