Gold price fluctuations continue, after reaching a high of $2065 at the beginning of February, the price plunged again and again reached a low of $2014 yesterday, February 5.
The Fed's suspension of the cut rate may have been one of the triggers for the recent decline in gold prices.
In general, in the D1 timeframe, the gold price is still above the MA 100 which calculates the moving average of the past 100 days which forms a weak bullish channel.
Another indicator, Bollinger bands, shows a flat trend with narrowing bands, which means low market volatility. Here, the lower band may become dynamic support at around $2000 with resistance near the upper band at $2050.
RSI, which is an oscillator indicator, shows level 46.27, which means the price is below the downtrend level.
However, in the H1 timeframe, the gold price was corrected near the middle band line. The price rebounds after hitting the 2014 low rising to $2024.
Here the Bollinger band forms a descending channel with a narrowing band indicating that the downward trend is starting to weaken in volatility.
The MA 100 indicator which calculates the moving average for the past 100 days shows a downward channel, which means the price is still below the downtrend line.
Meanwhile, the RSI indicator shows level 44, which means the price is moving below the downtrend level.
The price of gold tends to be correlated with the US dollar, when the US dollar strengthens, gold tends to decline, whereas if the US dollar weakens, the price of gold tends to rise.
Gold is also one of the safe haven assets that investors choose for the long term.