Gold prices rose slightly during trading on Friday, amid the dollar's decline against most of the major currencies.
The markets were able to absorb the Federal Reserve’s decisions last Wednesday to fix the interest rate at the range between zero and 0.25%, but it hinted at raising it three times in 2023 and three more times in 2024 to reach 1.8%.
And Fed Chairman Jerome Powell said in a press conference that he expected to start reducing bond purchases related to the “Corona” pandemic in November.
Later today, Powell will deliver an online speech at an event hosted by the US Central Bank.
On the other hand, the dollar index (against a basket of major currencies) at 4:38 GMT decreased by 0.4% to 93.1 points, and recorded the highest level at 93.1 points and the lowest level at 93.03 points.
In terms of trading, spot gold prices rose at 4:39 GMT by 0.1% to $1,751 an ounce, and the highest price was at $1752.7 and the lowest price was at $1743.2.
Gold price declined strongly yesterday to approach our main awaited target at 1735.00, and it is trying to achieve some temporary intraday gains now, but it faces continuous negative pressure coming from the EMA50, to support the continuation of the decline in the upcoming sessions.
Therefore, the overall negative scenario will remain valid and active unless the price rushes to breach 1770.00 and stabilize above it, noting that breaking 1735.00 will open the way for an extension of the descending wave towards 1692.00.
The expected trading range for today is between the support 1725.00 and the resistance of 1770.00