Gloomy price movements were traded for the gold commodity as investors continued to await Federal Reserve (Fed) Chairman Jerome Powell's speech at the Jackson Hole symposium starting today.
Apart from that, the publication of the United States (US) economic growth data for the second quarter yesterday with the latest reading slightly up -0.6% compared to -0.9% compared to the initial reading published last month.
The dollar index and US 10-year bond yields that saw a dismal move failed to drive a more pronounced move in gold in the market this week. But there is no denying that there is a slight increase in the price of gold towards the end of the week.
Pay attention to the price movement on the XAU/USD pair chart which measures the value of gold against the US dollar, the price is seen to have managed to make an increase on Thursday's trading yesterday after the price moved flat during mid-week trading.
The surge in prices is seen to have successfully crossed the 1760.00 level, but as investors feared, the price shrank again following the release of US GDP data which slightly strengthened the US dollar currency in the New York session.
However, the lower decline did not continue and the price was seen to end trading until the end of the session around the 1760.00 level.
Continuing on today's Asian trading session, the price is still seen to be moving slowly in the zone hovering above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart.
A slight drop below the MA50 level in the European session could trigger early expectations for a change in the bearish trend again, but it is still early to determine the direction of the price movement more clearly before the indication by Jerome Powell's speech.
If the price resumes its rise and passes the resistance zone of 1760.00, the rise will continue to reach the SBR (support become resistance) zone of 1780.00 with the US dollar likely to continue to shrink.
The next move higher will reach the 1800.00 level again for the price to test the resistance zone once.
On the other hand if gold plunges after Powell's speech, investors are likely to see the price drop first to the zone around 1740.00 or continue to plunge lower past the weekly low of 1728.00.
The lower price drop continues to reach the 1720.00 focus support zone to record the latest 4-week low.
