Gold commodity trading managed to overcome the strengthening of the US dollar at the beginning of this week to increase its value again ahead of the release of inflation data from the United States (US).
In addition, the change in the value of the yellow metal was also influenced by the US 10-year bond yield while the US dollar failed to maintain its strength after the release of NFP employment data at the end of last week.
Projections for a decline in US inflation in data to be published fueled expectations for the Federal Reserve (Fed) to maintain aggressive interest rate hikes for the third consecutive meeting.
Examining the price movement on the XAU/USD chart which measures the value of gold against the US dollar yesterday, the price is seen to have managed to increase until it reached the 1800.00 level which is the main focus of investors.
However, with a slow rate of movement, once the price touched that height the price started to flatten around 1793.00 until the end of the New York session.
A slight decline was seen in the price movement during the Asian session this morning (Wednesday), but it is still hovering above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart for a signal that the price still has the potential to continue its rise.
If the price manages to continue the increase, the 1800.00 barrier level will be tested before the price breaks through it and continues to rise to higher levels to record the latest high level.
Passing the resistance of the 1800.00 zone will record the latest 6-week high level for gold, expecting some further concentration levels such as 1815.00 and 1830.00.
On the other hand if the price shrinks back below the 1785.00 zone and crosses the MA50 level, investors will assess the signal for gold to fall to lower levels again.
For a further decline with a more obvious bearish movement, the price is expected to head towards the 1760.00 zone before the continued decline is seen to test the RBS (resistance become support) zone of 1740.00.
Investors are carefully monitoring the current movement of gold which will be driven by the release of US inflation data in the New York session shortly.
