- Gold has now consolidated after the FOMC yesterday which has had a mixed reception.
- The price is now within a range between USD 1940 and USD 1981.34 per ounce.
Gold 30-min chart
Gold is in consolidation mode after its impressive bull run recently. The price hit a high of USD 1981.34 per troy ounce and now has moved lower and if a firm consolidation zone. USD 1940 per ounce is now a support level in the near term and if it is broken there could be a move lower the main consolidation low just below USD 1910 per ounce. The FOMC rate decision and press conference has led to some confusion with the risk theme in equities markets flip-flopping from the EU to the US session.
The indicators have now turned bullish again as the MACD histogram is back in the green. The signal lines are below the mid-line but remember this is a short term chart so it does not too much credence. The Relative Strength Index has now moved above the 50 level and there is lots of space for the indicator could move to the upside.
The bulls look like they could be gunning for the USD 2K level. A break of the high on the chart could be the point where the trend could continue to the upside. On the downside, a reversal could be more realistic if the black support line under USD 1910 per ounce. It must not be forgotten that the market is still very much in a bull trend and if the red resistance zone breaks then the trend is very much back on.