GOLD Analysis – Gold Continues to Attempt to Touch the $2,050 Level

<p>In the uncertainty of the market ahead of the FOMC meeting early Thursday morning, gold trading is seen to have managed to display an excellent performance.</p><p><br /></p><p>The price managed to jump almost to the level of $2,050 on Tuesday yesterday but was later seen retreating back to around $2,030 again.</p><p><br /></p><p>Analysts see the factor supporting the increase in gold prices as the tension of the geopolitical conflict in the Middle East which is still ongoing.</p><p><br /></p><p>As investors are wary of the movement of the US dollar, gold is gaining traction as a safe-haven asset in a risky market environment.</p><p><br /></p><p>However, the price movement pattern may change after the market digests the results of the FOMC meeting later.</p><p><br /></p><p>If observed on the XAU/USD chart which measures the value of gold against the US dollar, the price increase continued yesterday reaching a height of 2048.00 after last week's level was successfully overcome which was around 2037.00.</p><p><br /></p><p>But before the price touched the 2050.00 level, the decline occurred again to the 2030.00 zone.</p><p><br /></p><p>The price decline does not cross the Moving Average 50 (MA50) line on the 1-hour time frame on the chart which serves as support for the price.</p><p><br /></p><p><br /></p><p>Resuming trading today (Wednesday), the price of gold hovered slowly above the 2030.00 zone in anticipation of the approaching FOMC meeting.</p><p><br /></p><p>The upside if it continues will continue to test the 2050.00 resistance before moving higher after that.</p><p><br /></p><p>A stronger surge of impact after the meeting could potentially see the price head up to the 2070.00 highs.</p><p><br /></p><p>However, investors will be worried if the price moves in the opposite direction, i.e. plunges down.</p><p><br /></p><p>From the 2030.00 zone, the price of gold can reach the 2000.00 level which is one of the focus zones before.</p><p><br /></p><p>In fact, a lower price drop from more than that level can occur with volatile movements that can trigger the effect of investors' reactions to the FOMC meeting later.</p>