As a result of the results of the FOMC meeting early this morning, the price of gold has significantly increased in the market, surprising investors.
Being the last meeting of the year, the Federal Reserve (Fed) decided to keep the interest rate unchanged at 5.50% as the majority of the market had expected.
Market analysts rated Fed Chairman Jerome Powell's speech as dovish as he signaled that the central bank's monetary policy tightening phase was at an end.
The policy makers are also discussing and considering the measures to cut interest rates will start to be implemented after this.
The US dollar dropped significantly in reaction to the meeting and at the same time also had a positive impact on the current movement of gold.
Examining the XAU/USD chart which measures the value of gold against the US dollar, the price that was previously hovering slowly in the 1980.00 zone has surged strongly breaking through the important level at 2000.00.
The price bounced close to reaching the 2040.00 high in trading that continued into the Asian session this morning before the movement began to slow towards the opening of the European session.
A higher increase is still seen as a tendency for the price with a target to test the 2050.00 level.
If the rise succeeds in continuing beyond that level, the target will shift to the height of around 2070.00.
However, if the price of gold shows a decline again, it is likely that the target seen as the focus is at the 2000.00 level.
A further break below that level would expect the price to return to the 1980.00 zone as before.
