As we approach the final trading sessions of this week, the price movement for gold is slowing down after the price explosion during the FOMC meeting.
Gold movement is influenced by changes in the US dollar, where the United States (US) currency is being driven by the latest monetary policy decision of the central bank, the Federal Reserve (Fed).
After evaluation, the US dollar is expected to gain an advantage in the near future trading period after jumping strongly during the meeting decision.
Meanwhile, gold investors see this situation as putting pressure on gold which could push the price further down towards the end of 2024.
On the XAU/USD chart which measures the value of gold against the US dollar, the price appears to have plunged close to 2580.00 during the reaction to the FOMC meeting early Thursday morning.
However, it later showed a recovery until climbing to around 2625.00.
The bullish pattern failed to continue when the price remained stagnant below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the XAU/USD chart.
The price returned to decline in the New York session yesterday as the US dollar received additional support from the economic growth data published with encouraging figures.
The price of gold sank back below the 2600.00 zone and was seen struggling to try to rise again in the Asian and European sessions today (Friday).
If it fails to hold above the 2600.00 level, the price of gold tends to fall even lower with expectations of breaking below the 2580.00 level.
Next, the extended fall in gold prices will challenge the level reached in November around 2540.00 before recording a new low.
However, if the price recovers before this week's trading curtain is anchored, investors may see the price jump up from the 2600.00 zone.
The price increase will return to the focus zone at 2650.00 to 2670.00.
