The pattern of horizontal movement of the gold price is seen to be getting sharper continuing trading at the beginning of this week.
The change in the US dollar is the main factor affecting the fluctuation of gold prices at the moment.
If at the beginning of March, the price of gold managed to break the highest record of all time but the price started to move horizontally throughout the last week.
Now the focus is on the FOMC meeting early Thursday morning which will have a big impact on the US dollar, as well as will drive the movement of gold.
Investors are watching the XAU/USD chart which measures the value of gold against the US dollar earlier this week.
The price is hovering above the 2145.00 zone and testing the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart which still gives a bearish signal for the current price movement.
Throughout the Asian session today the price slowed down at the 2160.00 level before dropping slightly at the opening of the European session this afternoon.
The drop in price is seen to test the 2145.00 zone as happened on Monday yesterday which is seen as support when making the price.
If there is a lower decline beyond that zone, the price is at risk of plunging lower to around 2080.00.
The situation could change with a surge in the price of gold could occur past the MA50 barrier before heading higher.
The highest level of 2195.00 reached earlier will be challenged before the price reaches the target level of 2200.00.
