GOLD Analysis – Gold 'Violent' When the FOMC, the $2,050 Zone Tries to Break!

<p>Gold trading also gave an interesting reaction following the market since yesterday focused on the highly anticipated FOMC meeting.</p><p><br /></p><p>This is due to the movement of gold which is inversely correlated with the US dollar currency.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>However if the price of gold plunges down, the 2030.00 zone will be tested as the closest support zone.</p><p><br /></p><p>If it still penetrates lower, this will warn investors for a severe fall in gold that will return to the 2000.00 level.</p>