Gold investors breathed a sigh of relief after the FOMC meeting ended early this morning when the price of the yellow metal was spared from falling.
Ending trading in the New York session, the US dollar was seen moving lower after an initially mixed reaction when the interest rate decision was announced by the Federal Reserve (Fed).
This has had the effect of increasing the price of gold as well, but at a relatively moderate pace.
The chairman of the Federal Reserve (Fed) is seen delivering a message that is still hawkish, but remains cautious.
An interest rate hike is still an option to continue, but will depend on employment and inflation data published later.
Analysts also see the majority of the market still not completely rejecting the conclusion that monetary policy tightening is at an end and some expect this interest rate hike to be the last before policy easing begins.
The XAU/USD price chart, which measures the value of gold against the US dollar, saw prices continue to climb higher into the day.
Investors have prepared early for the expected price increase after the bullish signal of the price being above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.
The price increase during yesterday's FOMC meeting has reached around 1978.00 before the price continued to increase in the Asian session this morning to the level of 1982.00.
The continued higher move looks set to attempt to surpass the previous week's high around 1987.00 for a recent 10-week high.
The next target is to reach the 2000.00 level as well as test the important zone.
But be careful if the price of gold experiences a decline again with the uncertainty that is still hitting the market right now.
For expected decline, the 1950.00 support zone is seen to be the focus of retesting after 2 weeks of falling prices successfully bounced up in that zone.
Break through lower to see a clearer bearish movement that can push the price towards the RBS (resistance become support) zone at 1930.00.
