Resuming trading on Thursday, the gold commodity was seen climbing slowly as investors cautiously awaited a speech from Federal Reserve (Fed) chairman Jerome Powell at the Jackson Hole Symposium event for indications of the central bank's next monetary policy setting.
Some expect Jerome Powell to continue with more hawkish measures, but others see the aggressive rate hikes to be slowed down. Both of the Fed's choices are still seen to have a big impact on the market.
At the New York session, the economic growth data of the United States (US) will soon be published, which will be the focus of investors for the impact on the movement of the US dollar, as well as influencing changes in the value of yellow metal assets.
Commodity analysts also saw gold trading also limited due to an increase in the 10-year US bond yield to 3.1%.
Judging the price movement on the chart of the XAU/USD pair which measures the value of gold against the US dollar, the price was seen moving more flat on Wednesday's trading yesterday after signaling a change in trend on the surge exhibited last Tuesday.
After the price surged past the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart last Tuesday, the price remained hovering above the latest support level yesterday with the tested price resistance at 1755.00 in the New York session.
The price increase began to be exhibited starting in the Asian session this morning even at a slow rate of movement, but has managed to return to the SBR (support become resistance) zone of 1760.00 by maintaining the momentum to continue increasing higher.
If the price manages to maintain the bullish trend movement, the increase will continue to test the SBR 1780.00 zone which has been the focus of the previous week's trading.
A break above that zone would further push higher to reach back to the 1800.00 high and test that key resistance zone.
On the other hand, if the price fails to hold above the 1760.00 zone and falls back lower again, the price is expected to return to the zone around 1740.00 which is seen as the price support zone for trading earlier this week.
A lower price drop has the potential to reach the 1720.00 focal support zone to record a recent 4-week low.
