Gold trading showed volatile movements influenced by US dollar trading as the focus turned to the FOMC meeting early this morning.
As expected, the Federal Reserve (Fed) kept interest rates at 5.50% before the follow-up statement by Fed Chairman Jerome Powell was digested.
Powell gave no indication of an interest rate hike at the December meeting as the market had predicted, and repeated his speech at the September meeting to maintain the existing tight policy.
Judging the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has made an increase from yesterday's European session to the 1990.00 level.
The price is also seen testing the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the chart before a decline in the New York session following the strengthening of the US dollar at the beginning of the session.
However, after the price dropped to the 1970.00 level, the price bounced back at the end of the session before closing the trade above the 1980.00 level.
Resuming trading on Thursday today, the price was flat from the Asian session to the European session around the 1985.00 level while testing the MA50 barrier.
If the decline occurs again, the 1970.00 level reached in the New York session will likely try to be overcome.
Next, the price will continue to decline towards the RBS zone (resistance becomes support) at 1950.00.
However if it shows a surge higher, the target is to test again the concentration level at the 2000.00 zone.
If the zone is successfully penetrated, the price of gold is predicted to climb higher and record the latest high level since last May.
