Gold investors don't seem to have high hopes for the yellow metal to shine again this week, but there is still a chance for a surprise at the FOMC meeting later.
Affecting the current value of gold, the movement of the US dollar currency is seen to be still strong since last week even though the fundamental factors of the central bank are seen to be putting pressure.
When the inflation data of the United States (US) was published in the New York session yesterday, the US dollar weakened for a while but returned to show strengthening again.
Thus, this situation is also seen to put pressure on gold which has been depreciating since the beginning of December after breaking the highest price record in history.
On the XAU/USD chart, which measures the value of gold against the US dollar, the weak price movement is in the 1980.00 zone, which continues trading today (Wednesday).
There was an increase when the reaction to the US inflation data was published yesterday, but the price that failed to touch the 2000.00 level has dropped back to the 1980.00 zone.
The price increase is also seen to be hindered by the Moving Average 50 (MA50) line on the 1-hour time frame on the chart which suggests the price of gold to continue to move in a bearish trend.
If the price sinks further below the 1980.00 zone, the price is seen to reach around 1950.00 and the reaction around that will be observed.
However, with the FOMC meeting in focus early Thursday morning, it is not impossible that prices could plunge further down.
So is the expectation for a drastic jump in prices that can be triggered following initial investor speculation on the direction of the Federal Reserve's (Fed) monetary policy until 2024.
If the price of gold surges, the initial resistance at the 2000.00 level will try to be broken before signaling a bullish trend change.
Next, the price increase will continue towards the previous focus zones such as around 2030.00 or 2050.00.
