Gold trading also gave an interesting reaction following the market since yesterday focused on the highly anticipated FOMC meeting.
This is due to the movement of gold which is inversely correlated with the US dollar currency.
Before the meeting at 3 this morning, the US dollar first decreased at the beginning of the New York session which was also a factor in the increase in gold prices.
However, after the US dollar strengthened again after the market's reaction to Federal Reserve (Fed) Chairman Jerome Powell's statement, the price of gold fell again.
If observed on the XAU/USD chart which measures the value of gold against the US dollar, the price made an increase to the target zone which is 2050.00.
But towards the end of the New York session, the price of gold plunged back to the 2030.00 zone due to the reaction of the FOMC meeting.
Continuing trading in the Asian session this morning, the price rose again almost touching the 2050.00 level before slowing below it at the beginning of the European session.
The price movement that is still above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart still signals a bullish movement for the price, but the resistance at 2050.00 needs to be overcome.
If the surge continues, the price will continue to rise higher towards the next target at the height of 2070.00 which is one of the previous price concentration zones.
However if the price of gold plunges down, the 2030.00 zone will be tested as the closest support zone.
If it still penetrates lower, this will warn investors for a severe fall in gold that will return to the 2000.00 level.
