The XAU/USD price movement, which measures the value of gold against the USD, seems to have continued to move slowly and flat until the end of the session at the beginning of this week's trading.
This can be observed in the 1 hour time frame on the price chart when gold trading continues to hover in the SBR (support become resistance) zone of 1780.00 which was previously considered as a support zone.
But investors are also likely to take into account the price movement that re -traded above the Moving Average 50 (MA50) barrier level for an early signal to a bullish trend.
Gold trading continues to be plagued by market volatility and remains struggling to find a clearer catalyst to catalyze an aggressive movement at the end of 2021 trading.
Further limiting the movement of gold prices is a follow -up to the expectation that there is a probability that the Federal Reserve (Fed) may be more immediate in implementing an interest rate hike.
The main catalyst will be focused on the release of the US consumer price index (CPI) data which will be released on Friday and is expected to be able to influence gold trading demand.
Indirectly, the expectation will strengthen hopes that the price of gold can maintain the surge shown at the close of trading last week (Friday) to reach the 1800.00 zone.
Furthermore the zone often suppresses spikes and decks because of that it has become a focus zone that will be tested first before the expectation that the price of gold will continue to rise again.
But it is not impossible if the resistance level of MA50 will be broken again which will completely affect the price movement to reach back to the support zone 1760.00.
A lower decline will push the price of gold to track the next support zone seen at 1740.00 and thus will move the price to remain with the bearish trend.
