Despite the slowing momentum, gold still managed to maintain its bullish pattern from the beginning of the week until Tuesday's trading yesterday.
This can be observed in the price movement on the XAU/USD chart which measures the value of gold against the US dollar.
The US dollar is still moving weak after starting a gloomy early week’s trading opening influenced by market sentiment yesterday.
In yesterday's New York session as well, data readings for the manufacturing and services sectors in the United States (US) with relatively dismal figures also influenced the US dollar to continue to move weak.
Hagra on the XAU/USD chart managed to make a rise after flattening at the support zone of 1850.00 and heading to the focus zone of analysts ’expectations at 1870.00.
However, the price of gold has not been able to break the resistance zone and showed a decline again in the Asian session this morning in connection with the beginning of the European session trading.
Investors evaluate price reactions that test the support level of the Moving Average 50 (MA50) on the 1 -hour time frame on the XAU/USD chart which will signal further gold price movement.
If the level manages to support the rebound, the resistance zone of 1870.00 will continue to be tested for a break.
Continuing the bullish trend, the price that passes 1870.00 will then target to head to the high of 1900.00.
On the other hand, if investors start to digest the indications of a change in the price direction for gold again, the price that falls below the 1850.00 zone will further head to the RBS (resistance become support) 1830.00 zone again.
For the lower decline that is still continuing, the focus zone is seen to be at 1810.00 and the support zone 1800.00.
