The price movement on the XAU/USD chart has featured a slow pace retention after the price made an aggressive surge last week to record a 2 -month high around 1850.00.
But overall, the price was observed to be carrying a horizontal signal after the price rebounded in the New York session (Monday) before moving slowly in the European session today (Tuesday).
The starting point is that the gold price movement is seen as able to once again reach the 1850.00 zone and will likely continue to be evaluated by investors to anticipate the next target.
Gold continues to benefit to move at a 2-month high as tensions between Russia and Ukraine have already resulted in demand for safe-haven assets.
The crisis became more tense after it was reported that it also received intervention from the United States which will probably have more influence on the gold trade movement in the future.
Nonetheless, the decision ahead of the upcoming FOMC meeting early Thursday morning will likely be the most important event most investors have been waiting for.
In short, investors are likely to expect that the price movement will return to test the 2 -month highs around 1850.00 to see a clearer signal for the price to remain bullish.
A bullish trend will be seen significantly if the price of gold is able to break through the zone with the expectation that the price may continue to fly to a 7 -month high at 1880.00 again.
Analysts also expect that the RBS (resistance become support) zone of 1830.00 is likely to be hit again if the price movement is not able to show a surge.
Therefore, the impact of a more severe decline is expected to push the price down to the level of 1800.00 and thus will give an early signal that a change in the bearish trend may be triggered.
