The strengthening of the US dollar in the New York session yesterday has stopped the initial increase in the value of gold on Tuesday's trading yesterday.
The positive survey data of the manufacturing sector in the United States (US) and the number of job openings that rose higher than expected supported the strengthening of the US dollar.
At first, the US dollar moved lower starting in the Asian session until continuing into the European session yesterday, giving room for gold to be traded to increase.
If you look at the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price increase has reached around 1657.00 before the price plunge again in the New York session.
However, making analysts still assess the price still has the potential to continue rising when the drop to around 1643.00 failed to pass the Moving Average 50 (MA50) support level that stops the decline lower, becoming a signal of price movement that is still bullish.
The bullish pattern is still displayed in trading that continues on Wednesday into the European session at a slow pace and has yet to overcome the highs reached yesterday.
If the price of gold manages to continue to rise higher, passing the 1660.00 zone will encourage expectations to go up to the height of 1680.00 which is seen as an important concentration zone.
Previously, the zone became a resistance for the price in last week's trading and if the price manages to continue the increase beyond it, the next target is the 1700.00 zone.
However, if the price makes a further decline and the MA50 support level fails to hold the decline lower, a change in the gold price trend will be expected after the price declines below the 1640.00 level.
The continued price drop is still targeted to reach the support zone at 1620.00 before the 1600.00 level becomes the next target if the price of gold continues to experience a continuous fall.
The movement of gold will be affected by the reaction to the results of the FOMC meeting early Thursday morning which is expected to shake the market.
