A little relief for investors, gold trading on Thursday showed a recovery in its price again after a significant fall the previous day due to the election events in the United States (US).
The renewed depreciation of the US dollar yesterday has eased the pressure on gold to see its price rise again, but there is still a risk of a fall.
The results of the latest FOMC meeting were answered early this morning, with a smaller interest rate cut by the Federal Reserve (Fed) by 25 basis points.
The price of gold did not show significant movement after the results of the meeting, but it was seen that there was an increase.
On the XAU/USD chart that measures the value of gold against the US dollar, it can be observed that the price recovered from yesterday's lowest level around 2643.00 until it managed to pass the level of 2700.00.
However, the price failed to maintain a position above that level, witnessing a slow decline in the Asian session this morning, continuing into the early European session.
The price is hovering around 2690.00 while hovering above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart.
The movement of gold prices is expected to be more risky and volatile heading into the final trading sessions of this week, hence analysts are warning investors to be cautious.
If gold prices show a rebound higher above this morning's highs, the price will re-enter the flat zone at the beginning of the week around 2730.00-2750.00 before approaching the 2770.00 concentration level.
However, if the price continues to decline lower past the level of 2670.00, the price of gold is at risk of falling lower than the level reached yesterday.
A further drop in price is expected to retarget to the 2600.00 level.
